19.3

What is a free enterprise economy?

It is another term to describe america's economy. Competition is allowed to flourish with a minimum of government interference

voluntary exchange

the act of buyers and sellers freely and willingly engaging in market transactions

profit

the amount of money left over after all the costs of production have been paid

profit motive

the driving force that encourages individuals and organizations to improve their material well-being

competition

the struggle that goes on between buyers and sellers to get the best products at the lowest prices

private property rights

we have freedom to own and use, or dispose of, our own property as we choose as long as we do not interfere with the rights of others

5. What are some of the advantages and disadvantages of competition to buyers and sellers?

Competition rewards the most efficient producers. Competition also forces the least efficient producers out of business or into other industries. The result is that competition makes for efficient production, higher-quality products, and more satisfied customers

How does consumer sovereignty affect the free enterprise system?

Consumer sovereignty affects what the people produce

What are the limits of private property rights?

Private property rights means we have the right to own and use our property as we choose to do as long as we do not interfere with the rights of others

What economic choices will you be free to make upon graduating from high school?

You can choose where you want to work, and do.

capitalism

an economic system in which private citizens own and use the factors of production in order to seek a profit

free enterprise

another term used to describe the american economy. competition is allowed to flourish with a minimum of government interference

consumer sovereignty

describes the consumer as the "king" or ruler, of the market, the one who determines what products will be produced