ReadingComprehension
Passage1
TheAmericaneconomicsystemisorganizedaroundabasicallyprivate-enterprise,market-orientedeconomyinwhichconsumerslargelydeterminewhatshallbeproducedbyspendingtheirmoneyinthemarketplaceforthosegoodsandservicesthattheywantmost.Privatebusinessmen,strivingtomakeprofits,producethesegoodsandservicesincompetitionwithotherbusinessmen;andtheprofitmotive,operatingundercompetitivepressures,largelydetermineshowthesegoodsandservicesareproduced.Thus,intheAmericaneconomicsystemitisthedemandofindividualconsumers,coupledwiththedesireofbusinessmentomaximizeprofitsandthedesireofindividualstomaximizetheirincomes,thattogetherdeterminewhatshallbeproducedandhowresourcesareusedtoproduceit.
Animportantfactorinamarket-orientedeconomyisthemechanismbywhichconsumerdemandscanbeexpressedandrespondedtobyproducers.IntheAmericaneconomy,thismechanismisprovidedbyapricesystem,aprocessinwhichpricesriseandfallinresponsetorelativedemandsofconsumersandsuppliesofferedbyseller-producers.Iftheproductisinshortsupplyrelativetothedemand,thepricewillbebidupandsomeconsumerswillbeeliminatedfromthemarket.If,ontheotherhand,producingmoreofacommodityresultsinreducingitscost,thiswilltendtoincreasethesupplyofferedbyseller-producers,whichinturnwilllowerthepriceandpermitmoreconsumerstobuytheproduct.Thus,priceistheregulatingmechanismintheAmericaneconomicsystem.
Theimportantfactorinaprivateenterpriseeconomyisthatindividualsareallowedtoownproductiveresources(privateproperty),andtheyarepermittedtohirelabor,gaincontrolovernaturalresources,andproducegoodsandservicesforsaleataprofit.IntheAmericaneconomy,theconceptofprivatepropertyembracesnotonlytheownershipofproductiveresourcesbutalsocertainrights,