1. The American Free Enterprise System Chapter 3 Section 1 EQ: What are the advantages of the Free Enterprise system?

2. What is a Free Enterprise System? I.What aspects of free enterprise are free? A. B. C. D.

3. Group Activity: Understanding Consumer Choice Did Gary Dahl, pet rock guy, respond to an actual consumer want? Work with your group to develop a new fad product You may develop a “prototype” if time permits Present your idea to the class with an analysis of whether your product meets or creates consumers’ wants.

4. How a Free Enterprise System Works What legal rights are built into the free enterprise system? What is the difference between open opportunity and legal equality? Are there any other motivations besides profit, for a person to start a new business? What fads like the pet rock have you seen come and go?

5. Competition in Free Enterprise Between 1995 and 2005, about 1,200 independent booksellers went out of business? What happened?

6. Group Activity- Competition Work with your group to identify a product that you know well and try to come up with a competing product. 1. Describe the existing product. Lists its strengths and weaknesses and the benefits it gives consumers 2.Describe your competing product. Note the same details as in part 1. 3. Write a brief paragraph explaining why your product will be a better value than the original. 4. Write a final paragraph explaining why competition is an essential part of free enterprise.