Business Essentials 2.04

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

• Minimize risk

• Meet people's needs

• Prevent problems

• Control production

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

• Government agencies

• Influential citizens

• Businesses and Individuals

• Entrepreneurs and producers

One of the results of freedom in the marketplace is that

• Businesses use resources efficiently

• People and businesses can own things of value

• People can buy anything they can afford that can legally be sold

• Government decides how to use an individual's private property

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

• Private property

• Economic resources

• Capital goods

• Equal distribution

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

• It helps limit our economic choices

• It encourages businesses to be cooperative

• It encourages people to save and invest

• It allows people to do anything they want to do

The basic role of the United States government is to

• Protect U.S. citizens

• Maintain control of prices

• Increase production

• Limit business startups

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

• The collection of taxes

• Limited government control

• Inflation

• Competition

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

• Individuals are the primary decision makers, while businesses are the regulators

• Individuals and businesses are the primary decision makers, and there is no regulator

• The government is the primary decision maker, and occasionally it becomes the regulator

• Individuals and businesses are the primary decision makers, while the government is the regulator

The economic basis for the private enterprise economic system is

• Competition

• The profit motive

• The marketplace

• Supply and demand

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

• Pure system

• Controlled system

• Entrepreneur system

• Price-directed system