Free Enterprise System

This is the social & political commitment & freedom to start their own businesses & compete

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

The driving force behind people going into business is

• Government involvement

• Making a profit

• opportunity cost

• Paying taxes

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

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

The rivalry between sellers to get more customers by lowering costs & better goods/services

• voluntary exchange
• competition
• incentives
• legal equality

According to the laws of supply and demand, businesses lower a product’s price when the supply of the product increases

• True

• False

What is a main building block of free enterprise?

• Private property

• competition

• Limited government intervention

• all the above

Building roads and railroads in the western frontiers helps promote...

• command economy

• centrally-planned economy

• free enterprise economy

• traditional economy