Characteristics of a Free Market Economy.

Ace your homework & exams now with Quizwiz!

The government does not direct any factors of production or own any factors of production.

no government involvement

This system encourages people to do what is best for them.

self interest

People will have the motivation to work harder and get more wealth.

incentives

Firms will fight with each other to win customers.

competition

Individuals are free to set up in business for themselves.

freedom of choice

All goods and services that are wanted will be allocated through a price system.

price system

Individuals have the right to own, control and use the factors of production.

private property


Related study sets

Step 3 - Compile Study Materials Quiz (100%)

View Set

Chapter 2-9: Structures of Photosynthesis

View Set

Chapter 13 operations management

View Set

Special Senses: Receptors, Ex: 22 General Sensation

View Set

ATI Exam 3/ NCLEX Examination Questions

View Set

Growth and development of the newborn and infant - Chapter 3 Peds

View Set

Texas Parent Taught Drivers Ed Course: ( Unit 1, Lessons 1-7 )

View Set