People Power LAP Quiz

1. Private enterprise is an economic system in which

• 1. a national planning board assumes all responsibility.

• 1. the government owns major industries, and individuals own consumer goods.

• 1. individuals own both major industries and consumer goods.

• 1. the government owns major industries as well as all consumer goods.

1. One of the advantages of a market economy is

• 1. freedom of competition.

• 1. absence of taxes.

• 1. government control.

• 1. assigned occupations.

1. The major incentive for going into business in the private enterprise system is called

• 1. the marketplace.

• 1. competition.

• 1. private property.

• 1. the profit motive.

1. Which of the following is a false statement about the freedom to own, use, buy, and sell private property in a private enterprise system:

• 1. People can decide how the things they own will be used.

• 1. People need a government permit to make a sale.

• 1. People are free to buy anything that can legally be sold.

• 1. People are free to decide how to spend their income.

1. In a private enterprise economic system, success or failure of businesses is largely determined by

• 1. promotion.

• 1. the government.

• 1. market strategy.

• 1. the marketplace.

1. An individual who assumes the risk of starting and operating a business is called a(n)

• 1. manager.

• 1. society.

• 1. economist.

• 1. entrepreneur.

1. People who are free to make personal economic choices often work harder, which results in

• 1. increased production.

• 1. expanded poverty.

• 1. higher inflation.

• 1. more unemployment.

1. Economic freedom in a private enterprise system is limited by laws that have been created to

• 1. control competition.

• 1. establish prices.

• 1. protect everyone.

• 1. regulate profit.

1. The freedom to own private property allows people in a private enterprise economy to earn the income they need to

• 1. work together.

• 1. live independently.

• 1. function in a group.

• 1. share experiences.

1. Although private enterprise is a productive economic system, a problem it has not been able to eliminate is

• 1. profit.

• 1. freedom.

• 1. poverty.

• 1. competition.