How To Organize Economies: An Overview of Economic Systems

Self-Check Questions

The chapter defines private enterprise as a characteristic of market-oriented economies. What would public enterprise be? Hint: It is a characteristic of command economies.

Hint:

Public enterprise means the factors of production (resources and businesses) are owned and operated by the government.

Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?

Hint:

The United States is a large country economically speaking, so it has less need to trade internationally than the other countries mentioned. (This is the same reason that France and Italy have lower ratios than Belgium or Sweden.) One additional reason is that each of the other countries is a member of the European Union, where trade between members occurs without barriers to trade, like tariffs and quotas.