How Does Free Enterprise Allocate Resources Lesson 3.2

Roles of Producers and Consumers Producers Seek Profit – By producing what consumers demand, producers “follow” consumer spending habit and patterns, and at the same time, try to encourage more demand with advertising. Consumers “Vote” with their Wallets – Consumers determine what products will succeed or fail, based on what they buy. – Main argument that capitalism is a free system.

Government in the US Economy Modified Free Enterprise – The government provides goods and services