The Free Enterprise System

In this economic system you have the freedom to start your own business. Also called the free market or capitalism.

• free enterprise system
• free response system
• free travel system
• freedom of choice

What is the most effective way for consumers to make their desires known to businesses?

• through mail and phone surveys

• by the purchases they make

• by protesting and boycotting products

• by hiring lobbyists and joining consumer groups

This is the idea that the government can take your property if it is in the best interests of the public. The government must give fair compensation.

• Eminent Domain

• Private Property

• Public Good
• Legal Equality

Money for public goods comes from taxes.

• True
• False

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes

This concept insures that everyone can compete in the marketplace by opening a business:

• profit incentive
• legal equality
• open opportunity
• open market

The concept of giving everyone the same legal rights, equal protections & due process of law.

• profit incentive
• legal equality
• open opportunity
• open market

Consumer Sovereignty is the idea that

• consumers stop buying products
• consumers produce products
• consumers react to prices
• consumers decide what is produced by the purchases that are made. Consumers "rule the market"

The concept that people have the right and privilege to control their possessions as they wish.

• legal equality
• open opportunity
• private property
• profit incentive

What is the term for the total value of all goods and services produced in one year in the American economy?

• Gross Domestic Product

• Net Worth

• Open Market Value

• Standard of Living