HOW THE FREE ENTERPRISE SYSTEM WORKS
- People have an idea to sell, or make a product. They can also decide to provide a service.
- They provide that service or product in a business they invest in.
- It continues to grow and prosper if the business earns a profit and there continues to be a supply and demand for it.
EXAMPLES OF THE BENEFITS OF THE FREE ENTERPRISE SYSTEM
Business
*Choice – to own a business, then choice regarding what to produce, how to produce, how much to produce, and for whom to produce *Profit from well-managed business *Sense of control over ones’s destiny *Supply and demand – high demand increases prices |
Consumers
*Competition lowers prices *Opportunity to choose different types of the same product |