Chapter 3 The American Free Enterprise System.

consumer sovereignty :

role of consumer as ruler of the market when determining the types of goods and services produced.

Academic Vocabulary Catalyst :

something that stimulates activity among people or forces .

Adverse wage:

unfavorable or harmful

Why are entrepreneurs considered both spark plugs and catalysts of the free enterprise economy?

Without them nothing can work properly.

How do the "supply-side tendencies" in a free enterprise economy tend to work to the disadvantage of the consumer?

Everyone wants the same thing but for doffernt prices and that's up to the buyer to desire what's best. Also to become more efficient.

Great Recession :

Severe economic downturn that lasted from late 2007 through mid-2009.

Academic Vocabulary Incentive :

Something that motivates.

Competition :

The struggle among producers for the dollars of consumers

Why do most Americans want government to play a role in the economy?

They protect us, provide things, regulator of money.

Why are entrepreneurs essential to the success of a free enterprise economy ?

They start a new business.

mixed or modified free enterprise economy :

economic system that has some combination of traditional, command, and market economies; also see modified free enterprise economy.

How do private property rights serve as an incentive in a free enterprise economy?

In a free enterprise economy, business firms will produce the goods that consumers want. Five major features define free enterprise: private property, choice, voluntary exchange, competition, and economic incentives.

Profit :

The extent to which persons or organizations are better off at the end of a period than they were at the beginning; usually measured in dollars.

Content Vocabulary Entrepreneur :

risk-taking individual who introduce new products or services in search of profits.

Regulator :

someone or something that controls activities

accommodate

to allow for

Vocabulary Exchange :

Economic action done or brought about by free choice .

How does a free enterprise economy provide opportunities for individuals ?

Free enterprise is an economic system that provides individuals the opportunity to make their own economic decisions, free of government constraints, and as private profit-potential businesses .

Biofuels :

Fuel made from wood, peat, municipal solid waste, straw, corn, tires, landfill gases, fish oils, and other waste.

Private property rights :

Fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish; includes both tangible and intangible property

How does the free enterprise system allow for the ability to more easily adapt to changing economic conditions?

A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition.

Content Vocabulary Free enterprise :

An economic system in which privately owned businesses have the freedom to operate for a profit with limited government intervention .

What role do consumers play in a free enterprise system?

Buying the products such as going to buy food at a restaurant .

Profit motive :

Driving force that encourages people to improve their material well-being; characteristic of capitalism and free enterprise.