Lesson 3: The American Free Enterprise System

Question 1

What are the characteristics of an American free Enterprise system?

Answer 1

1. Equal Opportunity
2. Profit Motive
3. Property Rights
4. Limited Government
5. Economic Freedom
6. Competition
7. Binding Contracts

Question 2

Equal Oppurtunity

Answer 2

We all have the same legal right to seek an education and compete in the marketplace.

Question 3

Profit Motive

Answer 3

The desire for profit drives the free enterprise system. It provides our incentive to work and create new businesses.

Question 4

Property Rights

Answer 4

We have the right to buy, sell, and control the use of our property, including intellectual property.

Question 5

Limited Government

Answer 5

Government laws and agencies regulate, but do not operate, US businesses.

Question 6

Economic Freedom

Answer 6

We are free to work where we want, buy what we want, and sell what we want.

Question 7

Competition

Answer 7

Films are free to compete with one another for our business. When they do, consumers benefit.

Question 8

Binding Contracts

Answer 8

We have the right to enter into contracts to buy and sell goods and services. Such contracts are legally binding.