1 Essential Question COPY: Describe each of the 5 key features of the U.S. Free Enterprise Economy Identify the three actors and two markets in the circular flow model and describe what is exchanged between all three in BOTH markets. Features of the U.S. Economy SECTION 2

2 Free Enterprise (Copy): The U.S. economic system is a version of capitalism called Free Enterprise Free Enterprise has 5 main features or characteristics. Each feature enables U.S. citizens to have freedom to act in certain ways or to receive certain benefits that promote a healthy economy. SECTION 2 Features of the U.S. Economy

3 Instructions on Group work (COPY) For each of the five features of free enterprise: Write down the feature Describe how it works Explain what life in our economy might look like if we did not have this feature. SECTION 2 Features of the U.S. Economy

4 Freedom to own private property/enter into contracts: How it works: What our Economy might look like without it? SECTION 2 Features of the U.S. Economy

5 Freedom to make choices: How it works: What our Economy might look like without it? SECTION 2 Features of the U.S. Economy

6 Freedom to act in Self-Interest: How it works: What our Economy might look like without it? SECTION 2 Features of the U.S. Economy

7 Freedom to engage in competition: How it works: What our Economy might look like without it? SECTION 2 Features of the U.S. Economy

8 Limited Government Involvement: How it works: What our Economy might look like without it? SECTION 2 Features of the U.S. Economy

9 Two markets of the circular-flow model (COPY): product market- on this market finished products and money payments are exchanged between individuals, businesses, and government. resource market- in this market resources are provided and consumed to make products in exchange for money payments between individuals, businesses, and government. SECTION 2 Features of the U.S. Economy

10 Two markets of the circular-flow model: (Cont.) Draw a Sketch of the Diagram on page 34 in your text book. Be sure to label it correctly and completely SECTION 2 Features of the U.S. Economy