1. A Tradition of Free Enterprise

-People consider America to be a "land of opportunity"- a place where anyone from any background could achieve success through hard work.

-Why has America been such an economic success? - because of the open land, natural resources, & uninterrupted flow of immigrants with different backgrounds & experiences all contribute.

2. Constitutional Protections

-Property Rights- they are included in the fifth amendment it states that no person shall

"be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation."

-Taxation- the constitution contains the basic rules for the ways in which government can tax individuals and businesses.

-Congress can only tax in the ways the constitution allows.

3. Basic Principles of Free Enterprise

-Profit Motive- the force that encourages people and organizations to improve their material well-being.

-Open Opportunity- the concept that everyone can compete in the marketplace.

-Economic Rights- legal equality- by giving everyone the same legal rights.

-Private property rights- the concept that people have the right and privilege to control their possessions as they wish.

-Free contract- allows people to decide what agreements they want to enter into.

-Voluntary exchange- allows people to decide what and when they want to buy and sell.

-Competition- the rivalry among sellers to attract customers while lowering the costs.

4. The role of the consumer

-Interest Group- which is a private organization that tries to persuade publie officials to act or vote according to the intrests of the group's members.

5. The role of the Government

-Information and Free Enterprise- Public disclosure laws- require companies to give consumers important information about their products.

-Protecting Health, Saftey, and Well-Being- public interest- the concerns od the public as a whole.

Standards

12.3 Students analyze the influence of the federal government on the American economy.

Understand how the role of government in a market economy often includes providing for national defense, addressing environmental concerns, defining and enforcing property rights, attempting to make markets more competitive, and protecting consumers' rights.

Identify the factors that may cause the costs of government actions to outweigh the benefits

Describe the aims of government fiscal policies (taxation, borrowing, spending) and their influence on production, employment, and price levels.

Understand the aims and tools of monetary policy and their influence on economic activity (e.g., the Federal Reserve).

 

Benefits of Free Enterprise || Promoting Growth & Stability || Economic Profile ||

|| Providing Public Goods || Providing a Safety Net ||