WorksheetsUnit 6 - Private Enterprise Practice Test
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Every society must develop a system for deciding how it will use its resources so that it can
a)
meet people’s needs.
b)
minimize risk.
c)
prevent problems.
d)
control production.
2.
Who answers the basic economic questions in a private enterprise economic system?
a)
Businesses and individuals
b)
Government agencies
c)
Influential citizens
d)
Entrepreneurs and producers
3.
One of the results of freedom in the marketplace is that
a)
people can buy anything they can afford that can legally be sold.
b)
businesses use resources efficiently.
c)
people and businesses can own things of value.
d)
government decides how to use an individual’s private property.
4.
Alex owns a guitar, several books, and a telescope. Alex’s possessions are examples of
a)
private property.
b)
economic resources.
c)
capital goods.
d)
equal distribution.
5.
Which of the following is a benefit of the freedom to own private property:
a)
It encourages people to save and invest.
b)
It helps limit our economic choices.
c)
It encourages businesses to be cooperative.
d)
It allows people to do anything they want to do.
6.
Which of the following statements best describes the way that the U.S. economic system functions:
a)
Individuals and businesses are the primary decision makers, while the government is the regulator.
b)
Individuals are the primary decision makers, while businesses are the regulators.
c)
Individuals and businesses are the primary decision makers, and there is no regulator.
d)
The government is the primary decision maker, and occasionally it becomes the regulator.
7.
The basic role of the United States government is to
a)
protect U.S. citizens.
b)
maintain control of prices.
c)
increase production.
d)
limit business startups.
8.
In a private enterprise economic system, consumers can choose from a variety of products as a result of
a)
competition.
b)
the collection of taxes.
c)
limited government control.
d)
inflation.
9.
The economic basis for the private enterprise economic system is
a)
the profit motive.
b)
competition.
c)
the marketplace.
d)
supply and demand.
10.
The private enterprise economic system is often described as a(n)
a)
price-directed system.
b)
pure system.
c)
controlled system.
d)
entrepreneur system.
11.
Which of the following is a disadvantage of private enterprise:
a)
Periods of unemployment
b)
Elimination of poverty
c)
Careful use of resources
d)
Equal distribution of income
12.
Private enterprise is based on the idea that everyone is better served when
a)
individuals are free to set their own goals.
b)
businesses regularly increase their prices.
c)
government determines where individuals will work.
d)
economic resources are controlled by the government.
13.
One of the benefits of economic freedom is that it provides individuals with
a)
the opportunity for success.
b)
equality in the workplace.
c)
the right to buy anything.
d)
a good standard of living.
14.
One of the freedoms provided to individuals by the private enterprise system is the freedom to choose
a)
where they will work.
b)
which taxes they will pay.
c)
how much they will be paid.
d)
which laws they will obey.
15.
Why are entrepreneurs important in a private enterprise system?
a)
They encourage the development of new products.
b)
They get rid of competition.
c)
They use resources inefficiently.
d)
They are responsible for deceptive advertising.
16.
One of the differences between private enterprise and other types of economic systems is that in other systems, workers
a)
may be prohibited from improving their standard of living.
b)
are able to make a wide variety of economic choices.
c)
are allowed to change jobs whenever they want to do so.
d)
can go to work for themselves if they are dissatisfied.
17.
Malinda owns a home, and instead of living in it, she decides to rent it out to make more money. Which economic freedom does this illustrate?
a)
Freedom to own, use, buy, and sell private property
b)
Freedom to compete for jobs
c)
Freedom to choose which laws to obey
d)
Freedom to control all the money you earn
18.
For which of the following do workers compete in a private enterprise system:
a)
Jobs
b)
Skills
c)
Benefits
d)
Profits
19.
Individuals put limits on their own economic freedom by
a)
making personal economic choices.
b)
competing with others.
c)
complying with the law.
d)
deciding to learn new job skills.
20.
One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government
a)
taxation.
b)
indecision.
c)
production.
d)
services.
100 %
