American Free Enterprise Capitalism

American Free Enterprise Capitalism

Multiple Choice

Advantages of a _______ ____________ include a high degree of individual freedom and customer satisfaction, a variety of goods and services, the incentive to take care of private property, and decentralized decision making.

Disadvantages include not providing for basic needs of everyone, a shortage of some services, and a high degree of uncertainty.

• Market Economy

• Traditional Economy

• Command Economy

• Ultra Market Economy

Multiple Choice

Which circle contains characteristics of a Mixed Economy?

• Tradition, government, and markets each answer some of the WHAT, HOW, and FOR WHOM questions.

• Central authority makes the major decisions about WHAT, HOW, and FOR WHOM to produce.

• Supply, demand, and the price system help people make decisions and allocate resources.

Open Ended

What risk does an entrepreneur assume when opening a business in market economy?

Open Ended

What are the weak points of the free enterprise economy?