An economic system in which both private industry and government play important roles is
A) laissez-faire capitalism.
B) socialism.
C) a mixed, or modified, free-enterprise system.
D) mercantilism.
E) centralism.
Question -2-Although the principles of laissez-faire are associated with Adam Smith-the Scottish economist and founder of the classical school of economics-and with his book Wealth of Nations, published in 1776, where were the principles developed?
A) France
B) United States
C) Great Britain
D) Italy
E) Spain
Question -3-Which of the following is true under the purest form of free enterprise or capitalism?
A) Government plays a major role.
B) People own private property, either directly or as shareholders.
C) Government responds to the laws of supply and demand.
D) Government owns the means of production.
E) Government is not present in society.
Question -4-In general, which of the political parties in the United States favors a larger role for government in regulating the welfare of the individual and society?
A) the Democrats
B) the Republicans
C) neither the Democrats nor the Republicans
D) both the Democrats and the Republicans
E) only the Conservatives
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