The Free Enterprise System
In the free enterprise system, decisions are made by...
What is individuals?
In this type of economy, the government determines what, how, and for whom products and services are produced.
What is command economy?
A free enterprise system allows these people to be more successful.
What is entrepreneurs?
How much of a good or service a producer is willing to produce at different prices.
What is supply?
the point at which the supply and demand curves meet
what is equilibrium?
Provide two examples of goods and two examples of services in a free enterprise system.
What is clothing and food?
What is doctors visits and haircuts?
Answers can vary.
In a command economy, there is little [blank].
What is freedom?
The free enterprise provides people, and specifically entrepreneurs, with more of this.
What is freedom?
An individual’s need or desire for a product or service at a given price.
What is demand?
At equilibrium price and quantity, the amount consumers want to buy equals this.
What is the amount producers want to supply?
The people who make or provide goods and services are called...
The people who buy the goods and services are called...
What are producers?
What are consumers?
This type of economy is a mix between a market and command economy.
What is mixed economy?
In a free enterprise system, [blank] can make decisions about what to produce and [blank], or the people who purchase the goods, make decisions on what to buy.
What is producers and consumers?
Consumers are willing to purchase more of the product or service when this happens.
What is the price of a product or service decreases?
The market price is above the equilibrium price, so the quantity being supplied by producers is greater than quantity demanded by the consumers.
What is surplus?
These people are important in the free enterprise system because they create and sell new kinds of goods and services.
What is entrepreneurs?
Members of society in this economic system have more specialized roles.
What is Traditional Economy?
Individuals are able to [blank] and [blank] what they wish in a free enterprise system.
What is buy and sell?
[blank] rises as the [blank] falls.
What is demand and price?
The market price is below the equilibrium price, so the quantity being supplied by the producers is less than quantity demanded by the consumers.
What is shortage?
What is another name for the free enterprise system?
Market Economy
The government determines what kinds of infrastructure that should be built and puts regulations on things like defense and railroads in this economy.
What is a mixed economy?
This is determined by the supply and demand for goods in a free enterprise system.
What is price?
Suppliers are willing to supply more of this at a higher price.
What is product or service?
When the price is too low, but consumers are happy to buy goods and services it is at this point on a graph.
What is below equilibrium?