American Capitalism
Capitalism thrives on this, the struggle among sellers to attract consumers with the best products at the lowest prices.
What is competition?
These are the sovereigns of the market.
What are consumers?
The most common form of business organization.
What is the sole proprietorship?
As a consumer of resources, the government does this more than all private businesses combined.
What is spend money?
If one owner leaves or dies, this will dissolve.
What is a partnership?
Buyers and sellers freely and willingly engage in market transactions.
What is voluntary exchange?
Economic freedom lets these choose their employees, their products, and their markets.
Who are employers?
It can buy or sell property, sue or be sued, and enter into contracts.
What is a corporation?
This level of government oversees banking, nuclear power, and interstate commerce.
What is the federal government?
The simplest business organization to form is this.
What is the sole proprietorship?
This rapidly changing market illustrates well how capitalism constantly brings newer and better products to consumers.
What is the cell phone market?
While the least efficient producers fail, the most efficient will do this.
What is survive and thrive?
All owners in this are responsible for the management and financial obligations of the firm.
What is a general partnership?
The level of government that provides parks, libraries, and transportation services.
What is the local government?
Ease of transferring ownership and limited liability for owners are two advantages with this form.
What is a corporation?
These rights give people the incentive to work and invest; they know they will keep what they earn.
What are private property rights?
Economic freedom allows these to choose their jobs, job location, and employer.
Who are workers?
Two forms of business organization that are not separate legal entities.
What are the sole proprietorship and the partnership?
These payments to support specific industries or other parts of the economy are quite controversial.
What are subsidies?
Sole proprietorships often struggle to raise this.
What is capital?
The lure of this assures us a never ending supply of goods and services.
What is a profit?
By starting new business and introducing new products, these are the spark plug and catalyst of a market economy.
What are entrepreneurs?
Some owners have complete responsibility, but others are not active in management and have only limited liability.
What is a limited partnership?
With any government project, from the space shuttle to a road, we must always ask whether the benefits justify these.
What are opportunity costs?
Corporate dividends are subject to this twice -- once when the business earns the profits originally and again when the business pays a dividend to shareholders.
What is tax -- double taxation?