Chapter 3 American Free Enterprise Section 1: Benefits of Free Enterprise Section 2: Promoting Growth & Stability Section 3: Providing Public Goods Section 4: Safety Nets

Benefits of Free Enterprise Economic Freedom Competition Private Property Contracts Self-Interest Profit Motive

Terms Profit Motive-eagerness for $$$$ Open Opportunity-everyone can compete in the marketplace Legal Equality-same rights for all Private Property Free Contract-enter into agreements Voluntary Exchange Competition

More Terms to Know Interest Group: organizations that try to persuade public officials to act or vote according to their interests. Public Disclosure Laws: food labels

Growth & Stability GDP-Gross Domestic Product-the total value of all goods and services that a country produces

Business Cycle

Alexander Graham Bell

Hasselhoff

Technology + Economics Microsoft

Engineered Chicken

Public Goods Public Good-a shared good or service that would be impractical to make consumers pay individually for. Examples??????

Terms Public Sector-part of the economy that involves transactions of the gov’t. Private Sector-part of the economy that involves transactions of individuals and businesses. Free Rider-a mooch, someone who would choose not to pay for goods and services but enjoys the benefits of them anyway.