Free Enterprise
The freedom of private businesses to operate competitively for profit with only a little government regulation.
What is Free Enterprise?
The motivation of firms that operate so as to maximize their profits. (Businesses operate in a way to make the most money).
What is Profit Motive?
This group does NOT regulate too much (relatively)
What is the government?
Played a large role in the Colonies' Economy.
What was Great Britain (England)?
The Intolerable Acts
What are the tighter regulations that Great Britain put on the Colonies' trade, which made the colonists mad and pushed them toward wanting independence from Great Britain?
Type of economy that free enterprise is based on.
What is a market economy?
In a Free Enterprise System, they make the decisions, own their businesses, decide what to buy, what to make, and what to sell.
Who are people and businesses. (or citizens) (Not the government)
Three advantages of Free Enterprise.
What are consumer choice, competition, and creation of wealth?
Two parts of Free Enterprise that were limited under Great Britain's rule.
What are freedom to produce and freedom to trade? (Whatever they wanted with whoever they wanted)
Four benefits of Free Enterprise
What are Ownership of private property, Choices for consumers, Competition that lowers prices, and Opportunities for private investment?
Four ideas that Free Enterprise is based on.
What are (1) economic freedom (2) voluntary exchange (3) private property (4) profit motive
In a Free Enterprise system, they create the businesses.
Who are citizens (or people)? (Not the government)
This leads companies to produce new products.
What is consumer demand?
Because it would have caused Great Britain to have competition in trade.
Why did Great Britain keep the Colonists from trading with anyone they wanted?
Ownership of private property, Choices for consumers, Competition that lowers prices, and Opportunities for private investment?
What are four benefits of Free Enterprise?
An economic system where production and prices are determined by unrestricted competition between privately owned businesses?
What is a Market Economy?
In a free enterprise system, they decide what to make and how much to produce.
Who are citizens (or people)? (Not the government)
Individual financial worth and wealth
What are two possible outcomes in Free Enterprise?
Mercantilism
What is the Colonies providing raw materials to Great Britain for Great Britain's benefit?
Four benefits of Free Enterprise?
What are Ownership of private property, Choices for consumers, Competition that lowers prices, and Opportunities for private investment?
Buyers and sellers freely and willingly engaging in market transactions, both the buyer and the seller are better off after the exchange than before it occurred.
What is Voluntary Exchange?
In a free enterprise system, they decide how much to charge for their products.
Who are citizens (or people)? (Not the government)
Less government interference and regulation in economics leads to this
What is more opportunities for individuals?
At first, the Colonists were OK with Great Britain controlling their trade. This changed things.
What is the French War, which made Britain need more money for its war debt, tightening trade restrictions on the Colonies?
Ownership of ________, Choices for __________, Competition that ______, and Opportunities for _____?
What are private property, consumers, lowers prices, and private investment?