Civics Chapter 17

1. What kind of economy does the United States have?

• Traditional

• Economic

• Free Market

• Wants and Needs

    The free-enterprise system means that Americans

• 1. Are able to run their businesses in the way they think is best

• 1. Are entitled to receive free products from stores. 

• 1. Do not have to pay taxes during their first year in business. 

• 1. Depend on the government to tell them how to operate.

   How does capitalism benefit the American people as a whole?

• 1. It encourages people to invest money for financial success

• 1. It inspires innovation in developing products

• 1. It promotes the production of quality goods

• All of the above

When a company is the only company selling a product or providing a service, they are called a

• monopoly

• Capitalism

• market economy

• corporation

    What is the lack of a specific resource?

• profit

• scarcity

• stock

• monopoly

    What happens to the price of something when the demand is high?

• The price will increase.

• The price will decrease.

• The price will stay the same.

• None of these.

   What is a small business owned by one person?

• sole proprietorship

• dual proprietorship

• corporation

• nonprofit organization

What kind of business has a board of directors?

• Corporation

• Directorship

• Proprietorship

• Entrepreneur

What businesses provide goods or services without earning a profit?

• sole proprietor

• corporation

• nonprofit organization

• for profit organization

What kind of business allows more than one person to share financial responsibility?

• partnership

• corporation

• nonprofit organization

• Executives