Understanding the U.S. Business System
Multiple Choice

1 .       As a factor of production, capital consists of: 



2 .       Which country does not operate within an avowedly Communist system? 



3 .       Which type of market economy provides for the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive? 



4 .       What principle states that buyers will purchase more of a product as its price drops and less of a product as its price increases? 



5 .       Private enterprise requires the presence of four elements. What is not an element of private enterprise? 



6 .       _________ occurs when a market or industry is characterized by numerous small firms producing an identical product. 



7 .       Which of the following is not a characteristic of a monopoly? 



8 .       Input and output markets create a circular flow in a pure market economy. In this economy, an individual going to work for an appliance manufacturer illustrates: 



9 .       The Sherman Antitrust Act of 1890 and the Clayton Act of 1914 were passed specifically to: 



10 .       Historically, Henry Ford's introduction of the moving assembly line in 1913 ushered in the: 



11 .       The historical period after World War II characterized by business starting with the customer and producers starting by determining what consumers want and then providing it was known as the: 



12 .       Which of the following is not considered a factor of production? 



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