39
practice examMultiple Choice

Practice Exam

Question 39 • Economics

How did Adam Smith’s economic ideas help the United States establish a free enterprise system? Choose three correct answers.

Answer
A
They led to fixed prices for consumers and producers.
B
They led to limited choice and communal ownership of property.
C
They led to individual ownership of property.
D
They led to open competition for consumers.
E
They led to freedom of choice for consumers and producers.
F
They led to more government spending and increased demand.

Explanation

Adam Smith’s ideas favored a free market in which people could own property and make economic decisions with limited government interference. Individual ownership of property supports private enterprise, while open competition and freedom of choice let consumers and producers decide what to buy, sell, and produce. Fixed prices and communal ownership do not reflect these principles.

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