Question

1. the economic basis for the private enterprise economic system is

a. competition.
c. the marketplace.
b. the profit motive.
d. supply and demand.

1. the private enterprise economic system is often described as a(n)

a. pure system.
c. entrepreneur system.
b. controlled system.
d. price - directed system.

1. which of the following is a disadvantage of private enterprise

a. elimination of poverty
c. careful use of resources
b. periods of unemployment
d. equal distribution of income

Explanation:

• For question 9: The profit - motive drives firms in a private enterprise economic system, which is its economic basis.
• For question 10: The private enterprise economic system is price - directed as prices play a major role in resource allocation.
• For question 11: Periods of unemployment can occur in a private enterprise system due to market fluctuations and other factors.

Answer:

1. B. the profit motive
2. D. price - directed system
3. B. Periods of unemployment