The U.S. Economy

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The price of a Life is Good t-shirt is $28. But, the final amount you have to pay is $29.48. Why do you have to pay more?

• You must pay an INCOME tax on the shirt.
• You must pay a SALES tax on the shirt.

Which one is NOT a type of money stores accept in the United States?

• Coins
• Checks or Debit Cards
• Stocks

Life is Good clothing company can CHOOSE what to make and how much to charge for their clothing and the government can't tell them what to do. Why?

• The US has Free Enterprise.
• The US has Private Property Ownership.
• The US has Profit Motive.

The Life is Good company OWNS the pictures on their clothing, the materials to make their clothes and all of the clothing they create. Why?

• The US has Free Enterprise.
• The US has Private Property Ownership.
• The US has competition.

Life is Good creates its clothing to EARN money for the company and the company's owners. Why?

• They have Private Property Ownership.
• They have a Profit Motive.
• They have Competition.

Look at the chart. What do households (people) GIVE so they can RECEIVE an income?

• goods
• services
• labor

When people buy items from the "Life is Good" store, it becomes their property. People's right to own property is protected by _______.

• executive orders
• negotiated contracts