Explain the meaning and characteristics of private enterprise.
Explanation should include the concept that the private enterprise system, also known as capitalism or the free market system, is where individuals and business owners are free to make economic decisions within governmental regulations.
Explanation should include the following distinguishing characteristics of the private enterprise system:
- Private ownership of property
- Entrepreneurship
- Consumer independence
- Market forces (e.g., competition, supply and demand, profit motive)
Process/Skill Questions:
- How do government regulations benefit the consumer?
- How do governments regulate business activities?
- What are the benefits and drawbacks of private enterprise?
- What are alternatives to private enterprise?
- How do consumers get the money they use to purchase goods and services?