Test 4 Flashcards
free enterprise economy is also known as
capitalism
economic freedom
people have the freedom to choose
voluntary exchange
the act of buyers and sellers freely and willingly to exchange in market transaction
private property rights
the privilege that entitles people to own and control their possessions
advantages/benefits of a free enterprise
individual freedoms
variety of goods
disadvantages/setbacks of a free enterprise
uneven economic growth
growing gaps between rich and poor
how does the American economy incorporate the main characteristics of a free enterprise economy?
The American economy allows buyers to make their own economic decisions.
what are the roles of the government
provider
protector
regulator
consumer
explain the role of government as protector
enforce laws to prevent wrongdoing
ensures the “rules of the game” are followed
name 4 economic and social goals
economic freedom
economic efficiency
economic growth
economic security
how are conflicts among economic and social goals resolved?
the economic system in the U.S. is flexible
what do you think the role of the government should be in the American free enterprise economy?
there should be minimum government interference
why do trade-offs among goals exist?
trade-offs exist because sometimes goals conflict with each other
the U.S. passes antitrust legislation to…
prevent market failure
name 2 main antitrust laws
Sherman act
Clayton Antitrust act
