Explain Why Our Economy In The United States Is Called A Free Enterprise System
Chapter 2 Outline
Building On What You Know
Our economy in the United States is called a free enterprise system
Free enterprise = the people in their economic roles are free to make choice
The Pillars of Free Enterprise
A free enterprise system functions best when it is supported by 6 social and legal pillars
Private Property
Specialization
Voluntary Exchange
The Price System
Market Competition
Entrepreneurship
Private Property
Private property is the resources and products owned by individuals or businesses.
Public property refers to the resources and products owned by government
The right to own property is protected by the United States Constitution, and the right to decide how private property is used has always been an important part of American economic system
In the
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It makes voluntary exchange efficient, and it reduces the potential for disagreement among buyers and sellers → without money, a free enterprise system could not work
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