Free Enterprise System

Free Enterprise System

The United States Economic System

Capitalism

• An economic system in which resources and

means of production are privately owned.

• Prices, production, and the distribution of

goods are determined mainly by competition
in a free market

Multiple Choice

True or False? Prices, production, and the distribution of goods are determined mainly by competition in a free market.

• True

• False

Competition

• The effort of persons or firms to attract

business by offering the most favorable terms.

Poll

Your Favorite?

• Pizza Hut

• Papa Johns

• Domino's

• Little Caesars

Multiple Choice

Private individuals own property and compete for profits in an open market.

• Capitalism

• Communism

• Socialism

Multiple Choice

which of the following is not a characteristic of a market economy?

• profit is the motivation for most businesses

• supply and demand dictate price and production

• competition between businesses is discouraged

Multiple Select

What are the three basic questions that every economic system must answer?

• What's produced?

• How's it produced?

• Who sells it?

• Who consumes it?