1. American Free Enterprise

2. Land of Opportunity… American success due to: – Open land – Abundant natural resources – Talented labor supply fueled by immigrants – Free enterprise

3. Characteristics of Free Enterprise 1) Profit is the key incentive in the American economy 2) Open opportunity – anyone can compete in the marketplace 3) Legal equality – everyone has the same rights 4) People can have private property 5) Voluntary exchange allows people to decide what, when, and how they want to buy and sell.

4. Daily Writing Prompt What are two characteristics of American Free Enterprise?

5. Public vs. Private sectors Public good - a shared good or service for which it would be inefficient and impractical to make consumers pay, or to exclude those who do not pay. Public goods are financed by the public sector – part of the economy that involves the transactions of the government

6. Public vs. Private sectors Market failures occur when the free market does not distribute resources efficiently. The “free rider” problem – people benefit from public goods that they have not paid for.

7. Public vs. Private sectors Private sector – the part of the economy that involves transactions of individuals and businesses

8. Exit Ticket After seeing part of the film “Sicko,” do you think the United States should adopt a universal healthcare system? Would you be willing to pay higher taxes to ensure that you will get care when you are sick?

9. Role of the Government in the Free Market Eminent domain – the right of a government to take private property for public use Government protects the public interest – the concerns of society as a whole. Regulates industries to protect the public health, safety, and well-being

10. The 5 th Amendment “no person shall be...deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”

11. Role of the Government in the Free Market Patents & copyrights give inventors and authors exclusive rights to sell their products