Question

1. What factors caused American business to develop into a mixed economic system rather than some other type of economic system?

2. Does an individual consumer really have a voice in answering the basic four economic questions described on page 14?

3. Discuss this statement: "Business competition encourages improved product quality and increased customer satisfaction."

4. Is government participation in our business system good or bad? What factors can be used to explain your position?

Answer 1

1) A mixed economic consists of privately owned business and government or state owned entities.

The factors that caused American business to develop into a mixed economic system rather than some other type of economic system are private ownership of land and real properties, supply and demand which was determined by customer demand, availability, prices and market force, Intervention of foreign competition, shrinkage of the globe, foreign rivalry, World war I and II, increasing population.

2) The four basic economic questions described on page 14 are:

• Are US workers are productive as worker in other countries.
• whether the gross domestic product for the US increasing or decreasing.
• The current balance of trade for our country.
• Why is the unemployment rate important.

Yes, the individual customer have a voice in answering these question because the health of the nation effects directly to customers, for example it affects the interest you pay for homes, credit card purchases.

3) Business competition encourages producing the product with quality and also increases customer satisfaction. Competition gives a good scope to all the producers to provide the product with minimum costs.

4) According to me it depends on the business that you are running on whether or not the government should be involved. Some policies help out and some hurt. Small/local business are my favorite, as you can run things basically any way you would like as long as you get your permit and such tasks like that done by the government