1. What are the roles of government in our free enterprise economy?

2. Characteristics of the American Economy
Limited role of government
Freedom of enterprise
Freedom of choice
Profit incentive
Private property
Competition

3. Limited role of government- free market- Laissez-faire
Private individual own the factors of production and answer the basic questions.

4. Freedom of enterprise- Individuals own factors of production
Freedom of enterprise- Individuals own factors of production. No guarantee of success
Limited government regulations.

5. Freedom of choice- Buyers make decision People freely choosing where and what to spend their money on.

6. Profit incentive- desire to make money that motivates people to produce and see goods and services.

7. Private property- property owned by individuals not governments.

8. Competition- Rivalry among producers or sellers of similar goods and services to win more business- competition leads to efficient use of resources and prices.