Capitalism

What is capitalism? Choose all the correct answers.

• a type of economic system where business is privately owned

• a type of economic system run by the people

• a type of economic system where business is owned by the government

Another name for capitalism is

• communism.

• socialism.

• the free-market system. 

• All the answers are correct

What is a free market system?

• People can decide what products to buy and how much they want to pay

• The market is free to work itself out without government intervention.

• ​Businesses can decide what products to make and how much to sell them for. 

• All the answers are correct

Supply - how much stuff companies have to sell

• True

• False

Demand - how much stuff people want to buy​

• True

• False

Supply - how much stuff people want to buy​

• True

• False

Demand - how much stuff companies have to sell

• True

• False

Supply and demand say that the ____of a product will eventually settle at a point where the demand for a product will equal the supply of a product. 

• price

• demand

• supply

• value

The idea of the free-market system was first introduced this Scottish economist in 1776.

• John Smith

• John Adams

• Adam Smith

• Adam Sandler

Today, many countries have a capitalist economy, but the government takes an active role in stabilizing the economy and providing regulations to protect the public. 

• True

• False