Characteristics of Free Enterprise

Cory Hufford

Economic Freedom

Economic freedom is the ability to choose things like your occupation, employer, or job location. It also means being able to buy what you want from whoever you want.

This picture represents that fact that you can choose who to buy products from.

Voluntary Exchange

Voluntary exchange is consumers freely buying products and producers freely producing them. Consumers choose the products that they choose because they think that they have greater value and producers sell their products because they can make money.

In this picture, two men are making a deal. Every time a consumer buys a product, they're making a voluntary deal with someone else.

Private Property

People have the right to keep private property and do what they want with it as long as it doesn't interfere with the rights of others.

When you own land, you can do what you want with the land.

Profit Motive

Profit encourages free enterprise because people are free to risk their money in search of profits.

In this picture, the businessman is free to choose what he does for number 1 to make profit.

Competition

Competition works in the free enterprise system to benefit consumers and producers both. Competition is possible because producers can choose what to produce to attract the most customers.

This picture represents competition because producers are all fighting for customers to make a profit.

Comment Stream

2 years ago
0

Your explanation of Private Property could have been more in depth I feel