Econ 001: Chapter 9 Homework V2 Chapter 6 Utility Definition With Explained Answers 100% C, Exams of Nursing

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AMERICAN FREE ENTERPRISE SYSTEM

REVIEW QUESTIONS/2023.Qualified

Virginia State University

Review Questions Directions: Read each main idea and answer the questions below. Refer to your textbook as you write the answers. A. The Role of the Entrepreneur Main Idea: Entrepreneurs are vital to the success of a free enterprise economy because they start businesses.

1. Why do entrepreneurs try to start businesses or develop new products? Are they more likely to succeed or fail? Entrepreneurs start a new business and products because they seek basic profit, but most tend to fail than succeed. 2. Who benefits from the activities of entrepreneurs, and how?

Everyone benefits primarily the consumers benefit a lot more than the others because they are rewarded with better products, lower prices, high quality. B. The Role of the Consumer Main Idea: Consumers tell businesses WHAT to produce in our economy.

1. Why is the customer always right? The consumer is always right because they decide What is produce, if the consumer likes the product the producer gets a rewarded.

Lesson 2 Roles & Responsibilities in a Free Enterprise Economy Consumer sovereignty drives progress because companies are competing to keep consumers coming back, they make efficient and new products to satisfy the consumer. C. The Role of Government Main Idea: In our mixed free enterprise economy, the government acts as a protector, provider, regulator, and consumer.

1. How does the government act as protector of the economy? The government makes laws against the abuse of individual freedom, misleading advertising, unsafe food and drugs, environmental hazards, and unsafe automobiles. Also, the right to protect the private property rights of the citizens.

2. What goods and services does the U.S. government supply its citizens? The national government supplies a system of justice and national defense, it provides agriculture, and funding for road construction. 3. What services do state and local governments provide? State government provides education, highways, and public welfare. Local government parks, libraries, sanitation, and transportation services.

D. Mixed or Modified Free Enterprise Main Idea: Though government involvement means the United States economy is not a purely capitalistic one, the public demands the benefits that government involvement provides.

1. Why is a mixed (or modified) free enterprise economy necessary? Why not do away with government regulation? A mixed free enterprise economy is necessary because it gives citizens freedom but also government regulation to protect the citizens. We don’t do away with government because it comes down to our safety as an economy. Summary and Reflection Directions: Explain how the entrepreneur, consumer, and government interact in our economy. The entrepreneurs provide and produce the products that the consumer buys the products that fit their needs and wants, while the government protects the consumers from the false and unsafe products and advertising the entrepreneurs try to sell. The government plays an important part in the economy by protecting