American Free Enterprise

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

• legal equality

• open opportunity

• private property

• profit incentive

The concept that people may decide what and when they want to buy and sell goods & services

• voluntary exchange

• legal equality

• private property

• open opportunity

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

• voluntary exchange

• competition

• incentives

• legal equality

Role of the consumer as ruler of the market in determining the types of goods and services produced

• customer policy

• cost/benefit analysis

• entrepreneur

• consumer sovereignty

The incentive to improve material well-being by seeking to gain from economic activities is called

• legal equality

• marginal benefit

• open opportunity

• profit motive

In the marketplace, producers are looking to

• buy goods for personal use

• earn a profit

• find incentives

• find the latest fad

The economic system where private citizens own and use the factors of production to generate profits is known as

• A) Socialism

• B) Communism

• C) Capitalism

• D) Feudalism

Which of the following is a characteristic of the American Free Enterprise system?

• A) Government ownership of all businesses

• B) Centralized economic planning

• C) Consumer choice

• D) Fixed pricing

In a free enterprise system, who determines what goods and services are produced?

• A) The government

• B) Consumers

• C) International organizations

• D) Labor unions