Passage Two
Questions 62 to 66 are based on the following passage.
The American economic system is organized around a basically private enterprise, market-oriented economy in which consumers largely determine what shall be produced by spending their money in the marketplace for those goods and services that they want most. Private businessmen, striving to make profits, produce these goods and services in competition with other businessmen; and the profit motive, operating under competitive pressures, largely determines how these goods and services are produced. Thus, in the American economic system, it is the demand of individual consumers, coupled with the desire of businessmen to maximize profits and the desire of individuals to maximize their incomes, that together determine what shall be produced and how resources are used to produce it.
An important factor of a market-oriented economy is the mechanism by which consumer demands can be expressed and responded to by producers. In the American economy, this mechanism is provided by a price system, a process in which prices rise and fall-producers, which in turn will lower the price and permit more consumers to buy the product. Thus, price is the regulating mechanism in the American economic system.
The important factor in a private enterprise economy is that individuals are allowed to own productive resources (private property), 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.
62. What can we learn from the first paragraph?
A) Americans are never satisfied with their incomes.
B) Americans tend to overstate their incomes.
C) Americans want to have their incomes increased.
D) Americans want to increase the purchasing power of their incomes.
63. What is the main idea of the second paragraph?
A) Mechanized production can satisfy the consumers.
B) Consumers can express their demands through producers.
C) Producers decide the prices of products.
D) Supply and demand regulate prices.hxen.com
64. According to the passage, a private enterprise economy is characterized by .
A) private property and rights concerned C)ownership of productive resources
B) manpower and natural resources control D)free contracts and prices
65. The passage is mainly about .
A) how American goods are produced B)how American consumers buy their goods
C) how American economic system works D)how American businessmen make their profits
66. The word “embraces” (Line 4, Para.3) may convey the meaning of .
A) hugs B) includes C) excludes D) demands
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