Can you give examples of family or community members who started up small businesses?
Does the “land of opportunity” affect you?
Concepts of Free Enterprise
The American free enterprise system is based on a free marketplace where producers and consumers make decisions.
What types of products do you believe would be sold at a local store if a central economy decided what should be produced?
Why Does it Work?
Principles that support the free market system:
Constitution protects property rights, contracts, etc.
We expect our government to preserve an efficient economy and serve the public interest
Profit Motive: the force that encourages people and organizations to improve their material well-being
Open opportunity: the concept that everyone can compete in the marketplace
Legal equality: the concept of giving everyone the same legal rights
Private property rights: the concept that people have the right and privilege to control their possessions as they wish
Free contract: the concept that people may decide what agreements they want to enter into
Voluntary exchange: the concept that people may decide what and when they want to buy and sell
Competition: the rivalry among sellers to attract customers while lowering costs
We love to buy goods! Compete for me!
Just a thought…
A city, state, or the feds can take a person’s property, only if it pays the fair market value of the property.
Give examples of when this might happen!
Finish Ch.3 Sec. 1 Review…(hint…use the chart on p.52 to help you )
Research one of the regulatory agencies listed in the chart on page 55 in the textbook.
You can call or visit their websites online to gather information about these agencies.
After gathering info on the history, purpose, and current activities of the agency, create a “facts sheet” that summarizes the information you have learned. Describe this agency’s role in creating and enforcing policies that serve the public interest. Be sure to also assess the benefits and drawbacks of the agency! Worth 15 points!