Charateristics of Free Enterprise Vista Unified School District自由企业的特点，Vista学区.pptVIP

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Charateristics of Free Enterprise Vista Unified School District自由企业的特点，Vista学区.ppt

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Charateristics of Free Enterprise Vista Unified School District自由企业的特点，Vista学区

Characteristics ofFree Enterprise How does Free Enterprise answer the 3 Economic Questions? What goods will be produced? sellers decide: what are consumers willing and able to purchase? How will these goods be produced? producers decide For whom will the goods be produced? for those willing and able to buy 5 Characteristics ofFree Enterprise Systems private property – any good that is owned by an individual or a business public property-owned by the government 5 Characteristics ofFree Enterprise Systems Choice buyers sellers workers investors ? ? ? 5 Characteristics ofFree Enterprise Systems Voluntary exchange people can exchange what they value less for what they value more people are free to contract and negotiate 5 Characteristics ofFree Enterprise Systems Competition producers compete for consumers by making better products and/or reducing price. businesses compete for better workers with higher wages workers compete for jobs by accepting lower wages or by offering better skills 5 Characteristics ofFree Enterprise Systems economic incentive money acts as an incentive people are inspired to work and create businesses in the hopes of making money. “the invisible hand”- free market An Inquiry into the Nature and Causes of the Wealth of Nations - 1776 Free markets will guide the most efficient and just distribution of goods and services, providing the most benefit to the most people. “the invisible hand” influences the U.S. founders Rights Imply Responsibilities in a Free-Enterprise System The right to voluntary exchange implies the responsibility to provide honest information. The right to private property implies the responsibility to use it in a legal manner. The right to compete implies the responsibility of sportsmanship. * “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard for their own self-interest” Adam Smith Adam Smith Ethics and Free-enterprise 1.Al