Free Enterprise 3.1

What goods will be produced?

How will these goods be produced?

For whom will the goods be produced?

Laws, Institutions, and Regulations

Different Systems

Help or Hinder

Circular Flow

Government, Businesses, and Households deal with each other

Economic relationship exists between each

A business pays a worker a day's wage.

A consumer decides to buy a sofa from a furniture company.

________ pay taxes to the __________ and the ___________ provides certain benefits.

Five Features of Free Enterprise

Private Property

any good that is owned by an individual or business

Choice

Freedom to choose

a key element of free enterprise

Voluntary Exchange

when individuals have the right to make exchanges or trades they will believe will make them better off

Competition

when businesses are in competition with each other you are more likely to have a bigger selection of products from which to choose from

sellers will compete with each other for your dollars by increasing the quality of the goods they sell, offering lower prices, and providing better service

Economic Incentives

The desire to earn more money strongly motivates business owners to produce more for their consumers

Credits:

Created with images by elljay - "american flag flag red"

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