LAP EC015

Question 1

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

Accepted Answer

taxation.

Question 2

Which of the following is a disadvantage of private enterprise:

Accepted Answer

Periods of unemployment

Question 3

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

Accepted Answer

private property.

Question 4

The economic basis for the private enterprise economic system is

Accepted Answer

the profit motive.

Question 5

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

Accepted Answer

the opportunity for success.

Question 6

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

Accepted Answer

where they will work.

Question 7

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

Accepted Answer

competition.

Question 8

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

Accepted Answer

meet people's needs

Question 9

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

Accepted Answer

Businesses and individuals

Question 10

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

Accepted Answer

Profits

Question 11

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

Accepted Answer

price-directed system.

Question 12

Why are entrepreneurs important in a private enterprise system?

Accepted Answer

They encourage the development of new products.

Question 13

The basic role of the United States government is to

Accepted Answer

protect U.S. citizens.

Question 14

Individuals put limits on their own economic freedom by

Accepted Answer

making personal economic choices.

Questions 14