Intro to Business Chapter 2: Economic Systems UNIT TEST Name ...

Intro to Business Chapter 2: Economic Systems UNIT TESTName: Period: Date:True/False—2 pts eachDirections:Mark a in the corresponding True or False column to identify the statement as True or False:True False Statement:1. A place where buyers and sellers come together to trade goods, services, and resourcesis called a marketplace.2. Voluntary exchange is controlled by the government.3. Determining which of its citizens should benefit from the production of goods andservices is something each nation must decide.4. When the government or a business hires new employees, it is participating in themarketplace.5. The basic economic problem, meeting unlimited wants and needs with limited resourcesis referred to as scarcity.6. Scarcity is a problem that is faced by individuals, governments, and businesses.7. In a system of capitalism, the government decides what will be produced with theresources available.8. In a private enterprise system, you may start or invest in any business as long as it islegal to do so.9. The profit motive is designed to allow lazy owners to become rich.10. Freedom of choice is an important right included in a private enterprise system.11. The economic system in the United States is primarily considered to be a MarketEconomy.12. Most economies are composed of a mixture of characteristics from the three economicsystems: Market, Planned or Directed, and Custom based. This concept is described asa Mixed Economy.13. The economic system in the United States is pure capitalism with not governmentinvention or regulation involved.14. A place where buyers and sellers exchange goods and services for some form of moneyis called the marketplace.15. An establishment or enterprise that supplies goods and services in exchange for someform of payment is called a business.OSI 2002-2003 PAGE: 3