The most common medium of exchange in modern economic systems is

One of the reasons that a country needs an economic system is because it

Which of the following types of economic systems adopts the fewest new ideas and improvements:

In a _______ economy, the government controls the economic system and does not allow private ownership of the means of production and distribution.

Government owns some basic means of production, but there is private ownership of business under

In a _______ economy, individuals and businesses own the means of production and distribution with limited government regulation.

An example of a country that has a socialist command economy is

Which of the following cultures has a traditional economic system:

A country that currently has a communist command economic system is

What type of economic system is used in the United States?

The way in which an economic system answers the basic economic questions depends upon the country’s

In a traditional economic system, the question of what to produce is answered by producing

In a communist command economy, who decides how the economic questions will be answered?

In a socialist economic system, who tends to answer the question of how products will be produced?

What action do consumers take that determines what will be produced in a market economy?

Lack of economic growth is a major problem for ______ economic systems.

Communist command economies are most likely to experience which of the following problems:

A major problem for individuals and private businesses in a socialist command economy is

Which of the following is a potential problem in market economies:

Every society must develop a system for deciding how it will use its resources so it can

Who answers the basic economic questions in a private enterprise economic system?

One of the results of freedom in the marketplace is that

Alex owns a guitar, several books, and a telescope. Alex’s possessions are examples of

Which of the following is a benefit of the freedom to own private property:

Which of the following statements best describes the way the U.S. economic system functions:

The basic role of the United States government is to

In a private enterprise economic system, consumers can choose from a variety of products as a result of

The economic basis for the private enterprise economic system is

The private enterprise economic system is often described as a(n)

Which of the following is a disadvantage of private enterprise:

Private enterprise is based on the idea that everyone is better served when

One of the benefits of economic freedom is that it provides individuals with

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose

Why are entrepreneurs important in a private enterprise system?

One of the differences between private enterprise and other types of economic systems is that in other systems, workers

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?

For which of the following do workers compete in a private enterprise system:

Individuals put limits on their own economic freedom by

One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government

In business terms, what is profit?

If expenses are greater than income, there’s no

In business terms, income is the money

The amount of money paid for raw materials and products sold is called

The money spent to run a business is called

Gross profit shows business owners the difference between what they’ve

Business owners are usually interested in net profit because they want to know what they can

Besides motivation, what does profit provide business owners in particular?

Which of the following is a general benefit profit provides:

Each purchase strengthens the economy by encouraging

Profitable businesses often help improve their local communities by

If no profit is generated for an extended period, a business must

Which of the following is a situation in which people are out of work and can’t afford extra purchases:

A popular product is said to be

Which of the factors that affect profit are usually able to be controlled?

Businesses must be careful about increasing the prices of their goods to increase profits because the result may be that they

Which activities are likely to increase a firm’s profit?

When employees are working faster or better, they are increasing their

To use resources wisely, business owners must reduce

For each new product it offers, a business seeks

People who go into business know that the business may not succeed. This possibility is referred to as business

The general classifications of business risks are

A hurricane that destroys a business is an example of a(n) ______ risk.

A garden store customer tripped over a plant, fell, and sued the store for damages. This is an example of a(n) ______ risk.

A union strike that stops production at a manufacturing plant is a(n) ______ risk.

What category of business risk includes production problems and incompetent employees?

When a rival’s product on the market reduces sales of your company’s product, your company is experiencing strategic risk caused by

Financial loss from investing time and money to comply with accounting standards is an example of which strategic risk?

Which of the following is a pure business risk:

Which of the following is an example of a business risk that cannot be covered by insurance:

The act of reducing or removing risks by shifting the risk factor to another person or business is referred to as ______ risk.

Having well-planned buildings and providing effective employee training are ways that a business can ______ business risks.

Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of _______ the risk.

Carefully selecting goods or services to sell is an example of handling business risks by _______ the risk.

If a risk is small in terms of money, a business may decide to _______ the risk.

Contractual agreements such as guarantees, surety bonds, and leases are examples of business risks being handled through

Businesses can protect themselves from the risk associated with lost shipments by

Careful screening of credit customers is an example of handling business risks through

When a business keeps a risk because management is unaware of it, the business is _______ the risk.

Requiring a contractor to purchase a surety bond is an example of handling business risk by _______ the risk.

Which of the following is one of the main principles of the private enterprise system:

Burger King and McDonald's are examples of

If a consumer chooses to go to the movies rather than to a pizza parlor, then the movie theater and the pizza parlor are

Most businesses put their greatest competitive efforts into competing

An electronics store charges less for a new television than other electronics stores. The store is engaging in ______ competition.

When Maura purchased a new car, she was able to get part of the purchase price back from the car’s manufacturer. The car’s manufacturer engaged in

Offering high quality, large assortments, and free shipping are examples of

A business that advertises a special sale as well as its delivery service is using a combination of competition.

Which of the following statements about perfect competition is correct:

What type of market structure is most commonly found in a private enterprise economy?

The automobile industry, the pharmaceutical industry, and the oil industry are all examples of

Which of the following are qualities of monopolies:

In many places, trash pickup is legally controlled by just one company. This is known as

Which of the following pieces of legislation prevents monopolies from forming and hinders price fixing:

One way that competition benefits business is by encouraging the creation of

What motivates businesses to produce efficiently and sell effectively?

One of the ways that competition benefits customers is by encouraging businesses to

Which of the following is a direct benefit to consumers of the effects of competition:

Because of competition, people in our society enjoy

One way that competition helps build a prosperous society is by