Economic Systems
What are the three questions that every economic system must answer?
What goods and services will be produced, how will they be produced, and for whom will they be produced?
What is "private property" in a private enterprise system?
Land, buildings, money, and anything you own, including the results of your work.
What freedom allows you to buy and sell private property?
Freedom to own, use, buy, and sell private property.
What are two things that limits what you can buy in a private enterprise system?
Personal choices and income.
What disadvantage occurs when people can’t find work?
Unemployment.
In a private enterprise system, who answers the economic questions?
What are individuals and businesses?
What drives businesses to compete and improve in a private enterprise system?
Competition and the profit motive.
What freedom allows businesses to compete for customers?
Freedom to compete.
What is one role the government plays in a private enterprise system?
Setting laws and taxes.
What economic issue is caused by uneven distribution of wealth?
Poverty.
What system has more government control over businesses and economic decisions?
Command economy.
What is "freedom in the marketplace"?
The market is self-regulating, with little government control.
What freedom lets individuals choose their jobs and what they buy?
Freedom to choose.
Why isn't the U.S. considered a pure private enterprise system?
Because of limited government control.
Why can the unequal distribution of wealth be a problem?
It leads to economic inequality.