Economics Chapter 3 section 1 – Flashcards
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Why do Americans want the government to intervene in their free enterprise economy?
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To protect the public Interest
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what is the purpose of free enterprise?
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To give consumers the freedom of choice
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Business cycles occur in free enterprise systems because
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economic decisions about factors such as prices, production, and consumption are determined by the market
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why has america been referred to as the "land of opportunity"
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it provides anyone from any background the possibility of success through hard work
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what is considered a negative effect of government regulations
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They cut into company profits, they stifle competition, and they cause higher prices for consumers (all of the above)
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in what two ways does the Bill of Rights protect and guarantee individuals freedom to engage in business activities
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recognizes property rights and limits on taxation's
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What basic principles are fundamental to american free enterprise
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profit motive, open opportunity, legal equality, private property, free contract, voluntary exchange, competition
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How does information provided by the government influence consumer decisions?
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Consumers do not but products revealed to be dangerous
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Which of the following is not a reason the government to provide a good or service as a public goods
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increasing the number of consumers would increase the cost of a private provider
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business cycles occur in free enterprise system because
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economic decisions about factors such as prices, production, and consumption are determined by the market.
