People Power LAP Test

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

• 1. minimize risk.

• 1. meet people’s needs.

• 1. prevent problems.

• 1. control production.

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

• 1. Government agencies

• 1. Influential citizens

• 1. Businesses and individuals

• 1. Entrepreneurs and producers

1. One of the results of freedom in the marketplace is that

• 1. businesses use resources efficiently.

• 1. people and businesses can own things of value.

• 1. people can buy anything they can afford that can legally be sold.

• 1. government decides how to use an individual’s private property.

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

• 1. private property.

• 1. economic resources.

• 1. capital goods.

• 1. equal distribution.

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

• 1. It helps limit our economic choices.

• 1. It encourages businesses to be cooperative.

• 1. It encourages people to save and invest.

• 1. It allows people to do anything they want to do.

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

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

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

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

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

1. The basic role of the United States government is to

• 1. protect U.S. citizens.

• 1. maintain control of prices.

• 1. increase production.

• 1. limit business startups.

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

• 1. the collection of taxes.

• 1. limited government control.

• 1. inflation.

• 1. competition.

1. The economic basis for the private enterprise economic system is

• 1. competition.

• 1. the profit motive.

• 1. the marketplace.

• 1. supply and demand.

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

• 1. pure system.

• 1. controlled system.

• 1. entrepreneur system.

• 1. price-directed system.