The Characteristics of a Free Enterprise Economy
- Zane Gottschalk
The market above shows the characteristics of Economic Freedom by allowing consumers to buy what they want, when they want, and letting the producer choose what they want to produce for the consumers.
Voluntary exchange is the willingness of consumers to participate in transactions. These transactions take place when one person has an item another person wants and a fair trade for that item is made. The transaction with the rock and stick above is a good example of what voluntary exchange looks like.
Private Property Rights
You have the right to purchase what you want in a Free Enterprise Economy. This power gives you the ability to purchase a car, television, radio, or whatever else you may desire.
The goal of a company is to make a profit so that the company can produce more goods and services for the consumers in the economy. The monopoly man represents the businesses trying to make a profit and gather money.
In a Free Enterprise Economy businesses have to compete with each other and make the consumer want their goods and services rather than another business' goods and services. Competition is an important part of the economy and is shown very well by the figure above.
Video on Government in the Economy
The video above shows how the government is involved in an economy by providing goods and services for the people to meet needs that would otherwise go overlooked. Also the video gives some good examples of how the government regulates the economy by putting laws into place that keep businesses producing goods and services for the population in a way that enhances competition and fair pricing.