Capitalism and Economic Freedom Understand Characteristics of our Economy Understand Driving Forces of our Economy Understand Roles People Play in our Economy

Characteristics of Free Enterprise Economy Economic Freedom Voluntary Exchange Private Property Rights Profit Motive Competition

Economic Freedom Given to people and businesses

Voluntary Exchange Buyers and sellers actively exchanging in the market on their own

Private Property Rights People may own and control their own possessions

Profit Motive Profit- Extent to which people are better off in the end Profit Motive- Force that encourages people to make business ventures

Competition Struggle among sellers to attract customers while lowering costs Ensures lower costs and better quality

Entrepreneur’s Role Organize FOP Start businesses Encourage competition

Consumer’s Role Decide products available Consumer Sovereignty- Consumers rule the market

Government’s Role Protector Provider and Consumer

Government’s Role Cont. Regulator Promoter

DO YOU KNOW?? The characteristics of capitalism? The driving forces of capitalism? What roles we all play in capitalism?