American Free Enterprise

What is the main reason most businesses exist?

• To provide jobs

• To earn a profit

• To help the community

• To create products

What is private property?

• Property owned by the government

• Property owned by individuals and businesses

• Property shared by the community

• Property used for public services

What does voluntary exchange involve?

• Forced trade between countries

• Buyers and sellers freely engaging in transactions

• Government-mandated sales

• Exchange of goods without consent

What is a free enterprise system?

• A system where the government controls all businesses

• An economic system with individual decision-making

• A system with no private property

• A system where only large companies can operate

What is a mixed economy?

• An economy with no government involvement

• An economy where only businesses make decisions

• An economy with decisions made by individuals, businesses, and government

• An economy controlled entirely by the government

What does competition refer to in economics?

• Cooperation among producers

• Struggle among producers for consumer dollars

• Agreement between businesses

• Elimination of all other businesses

What does infrastructure include?

• Only roads and bridges

• Services like transit, power, water, and sewer systems

• Only public transportation

• Only private buildings

What are transfer payments?

• Payments for exported goods

• Payments given to citizens as income support

• Payments for government services

• Payments for business investments

What role do government programs play in transfer payments?

• They increase taxes

• They provide a safety net for citizens

• They reduce business profits

• They eliminate private property

What are public goods?

• Goods and services provided by private companies

• Goods and services provided by the government and paid for by the public

• Goods and services that are free for everyone

• Goods and services that are only available to members