Description: Geocities
Image copyright: http://www.geocities.com/TheTropics/3684/economy.gif
*Matching
1. Capitalism – (g) A system of private ownership of raw materials, factories,
and equipment.
2. Free enterprise – (e) The right of individuals to enter into legal businesses
and operate them as they see fit.
3. Profit motive – (h) The desire to earn a surplus.
4. Competition – (f) The effort to outperform other businesses.
5. Private property – (c) The lands, buildings, or goods owned by individuals or
businesses.
6. Retailers – (i) Storekeepers who sell directly to consumers.
7. Wholesalers – (a) Businesses that sell to local storekeepers.
8. Public property – (d) The land, buildings, or goods controlled or operated by
federal, state, or local governments.
9. Gross domestic product (GDP) – (b) The total value of the goods and
services produced by a country in one
year
10. Invisible hand – (j) Adam Smith’s view on how a nation’s economic
resources can be efficiently allocated.
*Developing economic skills
1. What is a good title for this illustration?
- The U.S Free Enterprise System operation.
2. What evidence is given in the drawing that justifies calling the U.S economy system a free enterprise system?
- The rights to have private properties, private enterprises, and the freedom for competition.
3. What are the six main principles of the U.S free enterprise system that are shown in the drawing?
- 1. Private Enterprise. 2. Competition. 3. Rule of Law. 4. Private Property. 5. Profit Motive. 6. Consumer Sovereignty.
4. What information would you add to indicate that the Untied States has a mixed market economy?
- International trades.
