Ben Wants to Open a Business in a Country That

question 1

Multiple Choice

Ben wants to open a business in a country that allows him to own property privately, make a personal profit, and compete openly against other firms. In general he prefers that the government stay out of his business. He would like to open his business in a __________ system.

• A) socialist
• B) capitalist
• C) communist
• D) democratic

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Definitions:

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, the tax withholding that funds Social Security and Medicare.

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Overtime Earnings

The additional compensation paid to employees for hours worked in excess of the standard workweek hours, often calculated at a higher rate.