1. Free Enterprise

2. What is Free Enterprise?
Encouraging private ownership and individual initiative (independently outside of influence or control)‏

3. Tradition of Free Enterprise
America is considered the “land of opportunity”
History of social and political commitment to entrepreneurship and competition in the marketplace.
Examples: Rockefeller, Carnegie, Henry Ford

4. Basic Principles of Free Enterprise
1. Profit Motive
Encourages Individuals to take the risk of investing in business
Individuals make decisions that will maximize profits
Requires financial discipline = individuals are responsible for success or failure
Rewards innovation
Allows creative companies to grow
Improves productivity = higher profits to more efficient company

5. Basic Principles of Free Enterprise
2. Open Opportunity
EVERYONE can compete in the marketplace

6. Basic Principles of Free Enterprise
3. Economic Rights
- Legal equality = everyone has the same legal rights
- Private property rights = you control your possessions as you wish.
- Free contract
- Voluntary exchange = you decide what and when to buy and sell

7. Role of Government
4. Copyrights – Grants an author exclusive rights to publish and sell their work.
Piracy: Downloading of music, burning CD’s
(Examples: Napster, Limewire etc.)‏
5. Patent – Gives inventor exclusive right to produce and sell a product for 20 years.

8. What Economic Philosopher would agree with the free enterprise system
What Economic Philosopher would agree with the free enterprise system? Why?
How is a patent different than a copyright?
What is the Number 1 motive people have to enter into the free market system?
What risk do Entrepreneurs take to enter the free market?