2. Role of the Entrepreneur Very important person in economy Organizes and manages factors of production Starts new businesses Motivated by profit incentives

3. Role of the Consumer Consumers help determine which products are produced If consumers reject the product firm may go out of business Consumer sovereignty-describes role as “ruler” of market

4. Role of the Government Government-national, state, or local has a role to reflect the desires & goals of its citizens

5. Government’s Roles Protector-the U.S. enforces laws against false advertising, impure food and drugs, environmental hazards, and unsafe automobiles.

6. Government’s Roles (continued) Provider and Consumer- national government protects all citizens (national defense) State governments provide education and public welfare Local governments provide parks, libraries, bus services, etc.

7. Governments Roles (continued) Regulator- government protects competition in the marketplace. It oversees interstate commerce, communications, industries such as banking and nuclear power.

8. Government’s Roles (continued) Promoter of National Goals-government reflects the will of a majority of people People are able to achieve economic goals