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
*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
*Competition lowers prices
*Opportunity to choose different types of the same product