Characteristics of Free Enterprise

By: Kelly Ruff

Economic Freedom

Freedom to choose how to produce, sell, and use your own resources

This photo demonstrates how he has the freedom to choose which tie he wants to buy along with showing that the business has the freedom to put them on sale.  

Voluntary Exchange

Act of buyers and sellers freely and willingly engaging in market transactions

This shows the people willingly took part in the transaction because they think the car is better than their money and the seller thinks the money is more valuable than the car.

Private Property

Allows individuals to own and control their possessions as they wish

People have the right to paint their house because it's their property and it doesn't affect others.

Profit Motive

Encourages people and organizations to improve their financial and material well-being

Just like in gambling people are free to risk their money.  If it goes well, they'll gain money and if it goes bad, they'll lose money.


The struggle among sellers to attract consumers

This represents sellers competing with one another and represents how they do it individually because they have the freedom to produce how they think is best.

This video talks about how social entrepreneurs impact the economy.  Their goal is to solve problems like poverty and basically help people so they can help themselves while creating more jobs.  One company gave books to a school so they could get a better education so they would have a better chance of being employed later in life.

Comment Stream

3 years ago

I really like the example with gambling and profit motive as it connect the term to a real-life situation and a different side of economy. It is very creative and gives a better understanding of profit motive among individuals as well.

3 years ago

I enjoyed your video and how it talked about all the different entrepreneurs and how their businesses help people along with creating jobs for themselves.

3 years ago

Your video does a great job of showing how entrepreneurs are not just the people inventing new product and marketing it for their own benefit, but how many entrepreneurs use existing product in a new way. Also it shows they use this product to help others become independent in such a way that one day they themselves may become entrepreneurs.

3 years ago

Your example of the man painting his house for "Private Property" helped me to look at the topic further than my example of No Trespassing. It gave me a more widespread thinking of the topic.

3 years ago

I like how in used everyday examples for some of your topics. It really made me look at it from another direction and it helped me understand a lot more!