Economics 1.3

People have the right to choose their jobs & business gets to make their own decisions

• Competition

• Private Property

• Economic Freedom

• Self-Interest

People & Business can buy & sell their property as well as ban others from using it

• Economic Freedom

• Private Property

• Competition

• Self-Interest

This feature of Free Enterprise creates rivalries between business to attract/gain business and pushes businesses to create new and better products.

• Self-Interest

• Profit Motive

• Voluntary Exchange

• Competition

This feature of Free Enterprise includes consumers & producers willingly buying and selling goods.

• Voluntary Exchange

• Self-Interest

• Profit Motive

• Economic Freedom

This feature of Free Enterprise includes the desire for profit and improving material well-being

• Self-Interest

• Economic Freedom

• Voluntary Exchange

• Profit Motive

In the United States, you may...

• start your own business to meet a need

• decide what fees to charge for a service or product

• own and run any business as long as the laws are obeyed

• all of the answers are correct

__________ protect consumers against harm from products on the market.

• franchises

• profit motives

• private property rights

• government regulations

Which is an example of competition changing the marketplace?

• a chain bookseller forcing many individual booksellers to go out of business

• a chain hot dog restaurant failing to make a large profit

• a chain coffee shop having no effect on individual coffee shops

• a chain restaurant expanding its menu to include desserts

Describe the basic elements needed for a free enterprise system to work.

Think About

· choices

· legal agreements

· incentives

Answer explanation

1.            Answer should mention: the right to private property and the right to exchange that property voluntarily; the importance of open opportunities, legal equality, free contracts, and the profit motive.

True or False. Emergency services (fire fighters, police, etc. . . ), public educators and highways are examples of Private Goods.

• True

• False