Free Enterprise Simulation What are the characteristics of an economy based on free enterprise?

What is Free Enterprise?

Foundations of Free Enterprise Businesses can keep PROFIT to reinvest & grow the company Ownership of private property (and other assets) by individuals or businesses allows full control of decision making COMPETITON fosters product development and lower pricing – good for business and customers! Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS Businesses are FREE to operate with little government regulation Economic Freedom Relatively Low taxes Private Property Competition CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!) Relatively Low Taxes allow businesses to invest more capital Profit Motive

Paper Airplane Challenge Object: Object: The team or teams with the greatest number of airplanes through the hoop wins. Timetable: Timetable: Each team will have five minutes to design their "ideal" airplane(s). All planes manufactured during this time cannot be used when the competition begins. After the R&D time is over, the game will begin.

Paper Airplane Challenge Rules: Rules:  Only one person may throw the airplanes. That person must be behind the line in order for the plane to count.  Each plane must have the team number on it.  The plane must resemble a plane (two wings, and a nose). Paper balls do not count.  When the game is over, you must immediately return to your seat, sit quietly and wait for instructions. A violation of any rule will lead to disqualification.

In your groups... Discuss: Discuss:  What elements of Free Enterprise did you see reflected during the activity?  Did you change your strategy at all during the course of the game? Why or Why not?  What could your team have done to perform better?

In your groups... Discuss: Discuss:  In your opinion, which of the 5 characteristics of the free market system is most important?  How is the U.S. Constitution a statement of our national economic goals?  What would you find most attractive about owning your own business? What would be least attractive?

QuickWrite #8 Mercantilism is/is not different than free-enterprise because… Mercantilism is/is not different than free-enterprise because…