American Free Enterprise

Open opportunity helps to ensure that everyone is free to

• be efficient

• invest in stocks

• start businesses

• maximize production

Typically, when households are shown on the right side of a circular flow model of a modified free enterprise system, businesses are located

• on the left

• in the center

• at the top

• at the bottom

A modified free enterprise system

• is dominated by elements of the command economic system

• is dominated by elements of the traditional economic system

• has no government involvement in the economy

• has some government involvement in the economy

Which is a modified free enterprise economy?

• an economy that emphasizes a communist approach more than free enterprise

• an economy that emphasizes a traditional approach more than free enterprise

• an economy that has a few regulations in a free enterprise

• an economy that has no regulations that adjust free enterprise

A capitalist system is also known as a

• Communist

• Socialist

• Free enterprise system

• Traditional

Which is vital to a free enterprise system?

• Government

• Dow Jones

• Profit

• Competition

What role does the government play in the free enterprise system?

• None

• Limited

• Large

• All

What is the primary characteristic of the American Free Enterprise system?

• Government control

• Private ownership

• Collective farming

• Central planning

Which of the following is a key benefit of the American Free Enterprise system?

• Limited consumer choice

• Increased government intervention

• Economic freedom

• Restricted market competition

In the context of American Free Enterprise, what does 'profit motive' refer to?

• The desire to help others

• The drive to earn financial gain

• The aim to reduce costs

• The goal to increase taxes