Identify characteristics of free enterprise.

Identification should include

  • economic freedom
  • competition
  • equal opportunity
  • voluntary (willing) exchange
  • property rights
  • profit motive
  • binding contracts.

Process/Skill Questions:

  • What is economic freedom?
  • What is voluntary exchange?
  • Why is it important for buyers and sellers to be able to engage freely and willingly in the market transaction?
  • How does competition affect the economy?
  • How does competition benefit consumers and lower prices?