Economic Questions & Systems

An arrangement that allows buyers and sellers to come together to trade goods, services, and resources is called a market.

• True

• False

Governments with market economies rarely enact laws to encourage competition.

• True

• False

Answer explanation

There are two key questions to be answered in every economy.

• True

• False

Determining which of its citizens should benefit from the production of goods and services is something each nation must decide.

• True

• False

When the government hires new employees, it is participating in the marketplace.

• True

• False

In a system of capitalism, the government decides what will be produced with the resources available.

• True

• False

In the private enterprise system, you may start or invest in any business as long as it is not illegal to do so.

• True

• False

The profit motive is designed to allow lazy owners to become rich.

• True

• False

Freedom of choice is one of the important rights of the private enterprise system.

• True

• False

Our country’s economic system is pure capitalism with no government intervention in the marketplace.

• True

• False