The important factor in a private-enterprise economy is that individual are allowed to own productive resources , and they are permitted to hire labor, gain control over natural resources, and produce goods and services for sale at a profit. In the American economy, the concept of private property embraces not only the ownership of productive resources but also certain rights, including the right to determine the price of a product or to make a free contract with another private individual.
1. In Para. 1, the desire of individuals to maximize their incomes means ___.
A. Americans never feel satisfied with their incomes.
B. Americans tend to overstate the amount of their incomes.
C. Americans want to have their incomes increased.
D. Americans want to increase the purchasing power of their incomes.
2. The first two sentences in the second paragraph clarity the idea to us that ___.
A. producers can satisfy the consumers by mechanized production.
B. consumers can express their demands through producers.
C. producers decide the prices of products.
D. supply and demand regulate prices.
3. The word embraces in Para. 3 probably parallels ___.
A. enfold
B. hug
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