American Enterprise Pillars
What is Private Enterprise?
Individuals to control businesses, not a central planner
What is scarcity?
the idea that the demand for a good or service is greater than the availability of that good or service
What day is American Enterprise Day recognized each year by National FBLA?
November 15th
What is an issue small businesses in San Jose face?
They lag in adopting innovations. There are high expenses, but limited resources on how to manage these expenses. Some small businesses don't even have a website or any marketing channel.
What is competition?
encourages businesses to compete in competitive markets to win over the consumers
What are economic resources?
The inputs used to produce goods and services in an economy
What is American Enterprise?
The free market determines prices, products, and services rather than the government
What is an issue some San Jose community members face?
Limited tech access and digital skills; lack of access to broad band internet
What is private property?
Private ownership of resources; individuals are able to use their land/resources to establish business
What is an opportunity cost? (give an example)
The value of the next best alternative that is given up when making a decision. (ex. the opportunity cost of going to college would be the money you would have made from working)
Which president established American enterprise day?
President Jimmy Carter
What is the basic economic principle behind the American enterprise system.
Supply and demand
What is profit motive?
Private enterprises compete is for a larger profit
What is a Laissez-faire economy?
Refers to a free market economic philosophy where the government takes a "hands-off" approach and lets supply and demand dictate prices without too much regulation.
What is the opposite of a free market economy? (give an example)
Command Economy; ex. North Korea and Soviet Union. Countries like Russia are mixed (no country is purely command or free market)
What is one of Lynbrook AEP's goals this year?
Educate Lynbrook FBLA members about the American Enterprise System; Educate community/youth on digital literacy/business topics; Help small businesses better adapt to the digital age
What is consumer sovereignty?
Consumers to freely choose what good or service they want to buy
What is specialization?
When an organization focuses on a specific product, service, or process to become more efficient and gain a competitive advantage
Why did the president establish American enterprise day?
To honor the backbone of the U.S. economy which has endured for more than 200 years.
How does digitalization help small businesses?
They can use digital tools for managing budgets and developing prices, which can cut costs and make business operations more efficient.