Identify characteristics of free enterprise.

Identification should include the following concepts:

• Capitalism—An important element of capitalism is the private ownership of economic resources.
• Private enterprise—Individuals invest their money and time to satisfy consumers’ needs and wants.

Individuals make decisions about products and distribution based on the elements of the free enterprise system:

• Freedom to own property
• Freedom to take risks
• Freedom to make a profit—Achievement of monetary gain motivates individuals to engage in business ventures.
• Freedom to compete—Rivalry exists among businesses to sell their goods and services.