2-8 Role of Private Enterprise in US Economy Review

__________: An economic system where companies are privately-owned, versus being owned by the government, and that assumes companies are built with a purpose of creating economic value through innovation, driven by a profit-motive, and where prices are set by the market via the ebb and flow of supply and demand.

• Capitalism

• Socialism

• Feudalism

• Communism

An economic and totalitarian political system where there is no privately-owned property, where the government owns and controls the production and distribution of goods and services, where there are no classes, and people share equally from the benefits of labor.

• Communism

• Capitalism

• Feudalism

• Monarchy

__________: The rivalry between companies selling similar products and services, competing to attract customers with limited dollars to spend.

__________: Someone who identifies an opportunity by creating a solution to a problem, starts a business, assumes the personal and financial risk (and rewards) of the venture, and strives for constant improvement in an effort to grow the business and improve society.

• Entrepreneur

• Employee

• Investor

• Manager

An economic system that is a blend of capitalism and socialism.

• Mixed Economic System

• Traditional Economic System

• Command Economic System

• Market Economic System

A market where one company controls the supply of a good or service, where other options for consumers aren't readily available, and where the barriers to entry for other companies are highly restrictive.

__________: Also called the Market Economic System, or Free Market System, or Free Enterprise system, is an economic system where production, wages, and prices are determined via the application of the law of supply and demand, with little or no government regulation.

• Private Enterprise

• Command Economy

• Mixed Economy

• Traditional Economy

__________: Any property owned by a private party, versus being owned by the public, i.e. the government.

• Private Property

• Public Property

• Community Property

• State Property

__________: The monetary gain obtained when revenue exceeds all the expenses associated with achieving that revenue, over a certain time period.

• Profit

• Loss

• Revenue

• Expense

__________: The incentive in a private enterprise system for people to risk capital to start a business in order to earn a profit in return.

• Profit Motive

• Market Share

• Social Responsibility

• Government Regulation