Free-enterprise Quiz

How did the U.S. Government encourage the free-enterprise system in the early 1800's?

• By setting the prices of goods and services

• By protecting the rights of businesses

• By monopolizing local and national markets

• By Owning the means of Production

This list describes some acts of Parliament during the colonial era. 

 

English Mercantilist Restrictions on North American Colonies, 1651–1733

How did English mercantilist policies influence the Founding Fathers following the Revolutionary War?

 

• The Founders encouraged minimal governmental influence over foreign relations. 

• The Founders promoted the establishment of governmental authority over citizens.

• The Founders promoted the establishment of governmental taxes on the states. 

• The Founders encouraged minimal governmental regulation of businesses. 

This excerpt is from a president's annual message to Congress.

Which economic principle is President Jefferson showing support for in this excerpt?

• Protective tariffs

• Limited competition

• Minimal government regulation

• Taxes to fund internal improvements

How did opposition to this system affect the economy of the early republic?

• The government prevented taxes on domestic goods.

• Cottage workers needed governmental assistance.

• Interstate trade taxes were forbidden.

• A free enterprise system was adopted.

The economic system of free enterprise began to prosper dramatically in the 19th century primarily due to —

• government guidelines restricting the use of child labor for employment.

• decreased competition between manufacturers of similar products.

• private property rights and a lack of government regulations on business owners.

• the rising cost of living in areas not affected by the industrial revolution. 

After the War of 1812, thousands of settlers and immigrants moved to the western frontiers of the United States in search of farming and business opportunities. In response, the government began building roads. This transportation network was intended to —

• promote the free-enterprise system

• establish federal control over industry

• discourage the organization of new territories

• prevent border disputes between states

The [wise], penniless beginner in the world, labors for wages awhile, saves a surplus with which to buy tools or land, for himself; then . . . hires another new beginner to help him. This, say its advocates, is . . . the just and generous, and prosperous system, which opens the way for all—gives hope to all, and energy, and progress, and improvement of condition to all.

 

—Abraham Lincoln, September 30, 1859This excerpt is from a political address made by a politician in the 1800s.

Which economic principle does Lincoln describe in this address?

• The value of free enterprise to earn a profit

• The significance of scarcity in business

• The importance of equal pay for equal work

• The need for competition in the market

Which person is most likely a supporter of free enterprise?

A

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In a free enterprise system, businesses have which characteristic in common?

• All means of production such as factories, farms, land, and transportation are under state control.

• Each individual is paid according to his family needs while the rest of the income is shared among other citizens. 

• Businesses try to influence consumer decisions using marketing and advertising to maximize profits.

• Businesses are influenced by forces of supply and demand and are balanced by a central authority which oversees all areas of production. 

Goods and services controlled mainly through supply and demand benefits the U.S. free enterprise system by —

• creating competition.

• helping put governmental leaders in power and creating mutually beneficial relationships between business and government. 

• causing censorship against marketing.

• neglecting civilians and providing the military with large amounts of government funding.