Characteristics of Free Enterprise

Brooke Hughes

Economic Freedom

Economic freedom is the key to greater opportunity and an improved quality of life. It’s the freedom to choose how to produce, sell, and use your own resources, while respecting others’ rights to do the same. While a simple concept, economic freedom is an engine that drives prosperity in the world and is the difference between why some societies thrive while others do not.

The United States has powerful economic freedom.

Voluntary Exchange

Voluntary Exchange is the act of buyers and sellers freely and willingly engaging in market transactions. Most of the time the buyers are better off than they were before. If a man is painting his house he may lend someone his phone for a paintbrush.

Private Property

People have private property rights. They can do whatever they want with their property, whenever they want. They could punch through their computer if they felt like it.

Profit Motive

Profit motive is the intent to gain money by doing something to earn it. One example is gambling. People gamble in order to hopefully gain money.


Competition is the struggle among sellers to attract consumers. The boys players soccer all chasing after one ball could be the sellers all competing for one consumer for one product.

Comment Stream

2 years ago

Your explanations are very detailed and I like that. Most people just put the definition and you went with something different.

2 years ago

I liked your thorough explanations of the characteristics and the video was very informative

2 years ago

I liked how in depth your definitions were. You didn't just put the bare minimum but you dug further and it really helps understand the concept.