Power Point 1
What economy has both capitalism and free markets?
Free Enterprise
Who ultimately determines what to produce?
Consumers
The term ____ reflects the idea that the consumer rules the market
Consumer Sovereignty
What is a disadvantage of free enterprise capitalism?
The gaps between the rich and poor increase
Businesses such as _______ have most of the same rights as individuals, but they also have many responsibilities as a result of government-imposed regulations.
Corporations
What is created when more and better products are produced in a free market capitalist system?
Wealth
Economic freedom allows you to choose what three things?
Occupation, employer, and job location.
Characteristics of a capitalistic free enterprise economy include what 5 things?
Economic freedom, voluntary exchange, private property rights, profit motive and competition.
Capitalism allows voluntary exchange between what two groups of people?
Buyers and sellers
Consumers play an important role in the American free enterprise economy because their _______ helps determine what is, and what is not produced
spending
Competition benefits who?
Both the consumer and economy.
In the United States, _______ has become increasingly involved in the American free enterprise system as laws have been passed and implemented since the early 1900s.
Government
Market economies produce a huge variety of what?
Goods
Marked economies adjust daily, mainly through the ever-changing _____ of goods and services.
What coverage may help pay for your medical bills or, in some states, repairs to your vehicle?
Medical Insurance
The U.S. Government sometimes passes laws meant to help protect citizens from what 5 things?
False advertising, unsafe food and drugs, environmental hazards, unsafe working conditions, and unsafe products.
Work, save, and, invest.
Individual freedom is closely related to what other freedom?
Economic Freedom
_______ are important because they are willing to take risks to start new businesses, so they become the catalyst of the free enterprise economy.
What is the opposite of pure competition?
Monopoly
List the four types of monopolies
Natural, Geographic, Technological, and Government
In an oligopoly how many sellers dominate the industry?
Very few
Successful entrepreneurs attract other firms to the industry, which leads to what 5 outcomes?
New products, greater competition, more production, higher quality, and lower prices.
T/F Oligopolist tend to act together
TRUE
Pure Competition is NOT Perfect Competition
FALSE