Economics Free Enterprise Capitalism

What occurs when people who do not take part within an economic transaction benefit from it?

• Negative Externality

• A Modified Free Enterprise Comes into Play

• Market Failure

• Wellfare is revoked

Why do producers enter a Free Enterprise Economy?

• To make products

• To seek profit

• To provide income to lower class consumers

• To create services for people

What is a person who benefits from economic transactions they are not a part of?

• Economist

• Entrepreneur

• Externality

• Free Rider

What is the side effect of products and/or services that affect someone other than the producer or buyer?

• Profit

• Infrastructure

• Subsidy

• Externality

How are entrepreneurs important within the economy?

• They buy lots of products

• They provide many jobs

• They give out free benefits

• They make a ton of money to offset the poorer consumers

An economic system based on private property and free enterprise - no government regulation in economics.

• Socialism

• Communism

• Capitalism

• Richard Arkwright

The resources- including land, labor, and capital- that are needed to produce goods and services

• Canal System

• Factors of Production

• Crop Rotation

• Hedgerows

Idea that government should play as small a role as possible in economic affairs.

• Adam Smith

• Karl Marx

• Robert Bakewell

• Laissez-faire

What is the primary characteristic of a free enterprise system?

• Government control

• Private ownership

• Collective ownership

• Central planning

Which economist is known for advocating free market capitalism?

• John Maynard Keynes

• Karl Marx

• Adam Smith

• Milton Friedman