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