BM: 3-5 Private Enterprise System and the U.S. Economy

What are the three basic questions that all societies need to answer?

• What, How, For Whom

• Why, When, How

• Who, Where, Why

• What, How, When

Which economic system is characterized by no privately-owned property and government control of production and distribution?

• Communism

• Mixed Economy

• Socialism

• Capitalism

Which country is an example of a communist economic system?

• Sweden

• China

• Canada

• Denmark

What is the distinguishing characteristic of capitalism?

• Equal distribution of wealth

• Profit motive

• Government control of prices

• Collective ownership of production

What is the main role of the government in a private enterprise system?

• To regulate business practices

• To own and operate all businesses

• To eliminate competition

• To control all business operations

Which economic system is a blend of capitalism and socialism?

• Communism

• Mixed Economy

• Traditional Economy

• Socialism

What is the economic theory that explains the interaction between buyers and sellers, and how price motivates supply and demand?

• Law of Supply and Demand

• Law of Diminishing Marginal Utility

• Monetary Policy

• Keynesian Economics

What is the main advantage of private enterprise in terms of consumer choice?

• Government-controlled pricing

• Wide selection for consumers

• No influence on production

• Limited options for consumers

What is the potential downside of the profit motive in private enterprise?

• Excess pursuit of profits

• Limited innovation

• Equal distribution of power

• Lack of competition

Which companies comprise a significant portion of the S&P 500 stocks, indicating their power in the marketplace?

• Ford, General Electric, Verizon, Boeing, ExxonMobil

• Walmart, Coca-Cola, McDonald's, Disney, IBM

• Apple, Microsoft, Amazon, Facebook, Google

• Tesla, Netflix, Uber, Airbnb, Spotify