Question

a. compromise b. free enterprise system c. law of supply and demand d. mixed economy 1. an economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control and determined in a free market. 2. an adjustment of opposing principles or systems by modifying some aspect of each. 3. an economy in which private enterprises exists in combination with a considerable amount of government regulation and promotion. 4. a law which states when supplies of goods and services become plentiful, prices tend to drop. when supplies become scarcer, prices tend to rise. multiple choice: 5. the american free enterprise system is based on private ownership, individual initiative, profit, and competition. it is also known as __________. a. democracy b. capitalism c. republic d. communism 6. instead of government, free enterprise relies on individuals making those decisions through the a. law of supply and demand b. law of supply and cost c. law of demand and profit d. law of availability and gain

Explanation:

1. The Free Enterprise System is defined by private ownership, private - decision - based investments, and a free - market operation.
2. Compromise means adjusting opposing principles by modifying aspects of each.
3. A Mixed Economy has private enterprises along with significant government regulation and promotion.
4. The Law of Supply and Demand states the relationship between supply (plentiful or scarce) and price (drop or rise).
5. Capitalism is based on private ownership, individual initiative, profit, and competition, which matches the description of the American free - enterprise system.
6. In a free - enterprise system, individuals make decisions through the Law of Supply and Demand.

Answer:

1. B. Free Enterprise System
2. A. Compromise
3. D. Mixed Economy
4. C. Law of Supply and Demand
5. b. Capitalism
6. a. Law of Supply and Demand