Questions and Answers
What is an economic system?
Economic systems are organized sets of procedures used within communities or between communities to govern the production and distribution of goods and services.
What is a free enterprise system also known as?
What are the four economic questions that the free enterprise system answers?
"What to produce," "how to produce," "how much to produce," and "for whom to produce."
Which of the following are characteristics of a free enterprise system? (Select all that apply)
Signup and view all the answers
The four characteristics of the free enterprise system are economic freedom, voluntary exchange, private property, and the ______.
Signup and view all the answers
Study Notes
Economic Systems
- Organized procedures within communities govern production and distribution of goods and services.
- Facilitate interactions and transactions between individuals or groups to meet economic needs.
Free Enterprise
- Also known as a market economy, where individuals utilize supply, demand, and price mechanisms.
- Determines responses to key economic questions: what to produce, how to produce, how much to produce, and for whom to produce.
Characteristics of Free Enterprise
- Comprises four main features:
- Economic freedom allows individuals to make their own economic choices.
- Voluntary exchange enables parties to trade goods and services willingly.
- Private property rights secure ownership and control over resources.
- Profit motive drives innovation and efficiency, encouraging entrepreneurship.
- Often referred to as capitalism or free market system, emphasizing minimal government intervention.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore key concepts of the free enterprise system with these flashcards. Each card presents essential terms and definitions related to economic systems and market economies. Perfect for quick review and study.
