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Chapter 1 Discussion Questions

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20 views

Chapter 1 Discussion Questions

Uploaded by

brookereeves005
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 1 Discussion Questions

1.) What factors caused American business to develop into a mixed economic system rather than
some other type of economic system?
a. The shrinking size of the globe, the intervention of foreign competition, the Great
Depression, World Wars I and II, and the ever-increasing age of our population (among
other factors) have contributed to our mixed economic system.
2.) Does an individual consumer really have a voice in answering four basic economic questions
described on page 14?
a. Yes, each individual votes in the competitive marketplace with his or her dollars.
3.) Is gross domestic product a reliable indicator of a nation’s economic health? What might be a
better indicator?
a. Currently, gross domestic product is the measure used by the nations of the world. A
system that measures only those goods and services that contribute directly to the
standard of living of the nation's citizens might be better.
4.) Discuss this statement: “Business competition encourages improved product quality and
increased customer satisfaction.”
a. If there are several products of the same type, the consumer will purchase the products
of better quality. Businesses are thus forced to improve their products constantly to
maintain or enlarge their share of the market.
5.) Is government participation in our business system good or bad? What factors can be used to
explain your position?
a. It can be argued that the government's participation in our business system is necessary.
On the other hand, the argument can be made that the government interferes. The
government provides goods and services that would not be produced by private
enterprise or that would otherwise be too expensive for the average citizen. Taxation is
necessary to pay for goods and services society needs.
6.) Choose one of the challenges listed on page 31 and describe the possible ways in which business
and society could help to solve or eliminate the problem in the future.
a. Small business and competition: I do believe there should be smaller, family-run
businesses because to me, they're nicer and more welcoming when you need to get
your busy day done. Big businesses are just a corporate chain of manipulative
businessmen who want money for their new house, small businesses are families who
want money to buy their children sports uniforms and play toys. The cycle of giving, just
choose the right person to give to.

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