2. Understand the foundations of democracy Analyze the connections between democracy and the free enterprise system Identify the role of the Internet in a democracy OBJECTIVES

3. Compromise Free enterprise system Supply and demand Mixed economy TERMS

4. Each individual has worth BASIC NOTIONS OF AMERICAN DEMOCRACY

5. All individuals are equal

6. The majority should rule but must respect minority rights

7. Compromise is necessary

8. Each individual must have the widest possible degree of freedom

9. The nation’s free enterprise economy reinforces the belief in individual freedom

10. Private ownership Individual initiative Profit Competition FREE ENTERPRISE SYSTEM BASED ON:

11. A system that does not rely on the government to make economic decisions CAPITALISM (FREE ENTERPRISE)

12. States that when supplies of goods and services become plentiful, prices tend to drop When supplies become scarcer, prices tend to rise LAW OF SUPPLY AND DEMAND

13. The American system in which the government does play a role in the economy by regulating and promoting it MIXED ECONOMY