Advantages of the Free Enterprise System

A free enterprise system is also known as a

• capitalist system

• communist system

• socialist system

• traditionalist system

The ability for everyone to enter and compete in the marketplace is called

• open opportunity

• legal equality

• free contract

• profit motive

Everyone having the same economic rights under the law is called

• profit motive

• free contract

• legal equality

• open opportunity

The ability to decide for yourself which legal agreements you will enter into is called

• profit motive

• open opportunity

• legal equality

• free contract

Free to Choose was written by

• Adam Smith

• Karl Marx

• Milton Friedman

• Gary Dahl

What are some of the advantages of Mexico’s “informal market”?

• It provides employment opportunities for many people.

• It contributes to the country's GDP significantly.

• It offers goods and services at lower prices.

• All of the above.

Profit is determined by subtracting the costs of

• marketing a product from the revenue gained by selling it

• producing a product from the revenue gained by marketing it

• producing a product from the revenue gained by selling it

• selling a product from the revenue gained by producing it

Producers help allocate scarce resources by seeking opportunities to

• earn profits

• increase incentives

• lower costs

• market products

A modified free enterprise economy is a type of

• centrally planned economy

• mixed economy

• pure market economy

• traditional economy

In a circular flow model of a modified free enterprise system, the government is typically placed

• in the center

• on the left side

• on the right side

• at the top