FREE ENTERPRISE ECONOMIC SYSTEM WORKSHEET                       back to Economies page

Use a T/F to answer each of the following questions. Include a reason for your answer.

1. In Canada all natural resources are owned by the government. _____ Why? _______________________________________________________________________________

2. Most of the business enterprises in our country are privately owned. _____ Why? ________________________________________________________________________________

3. In a free enterprise system owners are guaranteed to make a profit. _____ Why? ________________________________________________________________________________

4. The desire for profits forces businesses to produce those things most in demand. _____ Why? ________________________________________________________________________________

5. Price competition is limited to consumer goods. _____ Why? ________________________________________________________________________________

6. Product competition leads to the development of new and better products. _____ Why? ________________________________________________________________________________

7. Competition forces business firms to produce efficiently. _____ Why? ________________________________________________________________________________

8. Efficient production conserves productive resources. _____ Why? ________________________________________________________________________________

9. Because of specialization, people are more independent today than they were before. _____ Why? ________________________________________________________________________________

10. In a free enterprise economy business activity follows a regular pattern of ups and downs. ___ Why? ____________________________________________________________________________