Basic Concepts of Democracy

What is the free enterprise system based on?

-Private ownership -Individual initiative -Profit -Competition

American concept of democracy rests on these 5 notions

-Worth of the Individual -Equality of All Persons -Majority Rule, Minority Rights -Necessity of Compromise -Individual Freedom

Equality of All Persons

All are entitled to equality of opportunity and equality before the law.

Necessity of Compromise

Blending and adjusting of competing views and interests is needed.

Free Enterprise System

Economic system characterized by the private ownership of capital goods, investments made by private decision, not by government directive, and success or failure determined by competition in the marketplace.

Individual Freedom

Everyone is as free to do as he or she pleases as far as the freedom of all will allow.

Worth of the Individual

Everyone is unique and worthy of dignity. Laws serve the many who make up the society.

What type of economy does America have?

Mixed economy

What is a mixed economy?

Private enterprise exists in combination with a considerable amount of government regulation and promotion.

Majority Rule, Minority Rights

The majority is deemed correct. The minority's must have a lawful path to become the majority.

Why does the government interfere in mixed economy?

To protect the public To preserve private enterprise

Law of Supply and Demand

When supplies of goods and services become plentiful, prices tend to drop.