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Objectives After studying this section, you will be able to: ! ! Explore the characteristics of the American free enterprise system. ! ! Describe the role of the entrepreneur, the consumer, and government in a free enterprise economy. !

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Did You Know?

Bill Gates is perhaps the nations most successful entrepreneur. In 1975 he cofounded Microsoft Corporation, and 20 years later that company made him the worlds richest man. But in 1998, the federal government took Microsoft to court. The government charged that the software giant used unfair practices to try to put its competition out of business.

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Questions

Notes: 2.3 AMERICAN FREE ENTERPRISE

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Notes:

manages factors of production. The Role of Entrepreneurs ! the Entrepreneur Rewarded for a successful product. ! The entrepreneurs search for profits leads to new products, greater competition, more production, higher quality, and lower prices for consumers.

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Notes:

The Role of the Consumer

The consumer has a lot of power in a free market economy. Customer is ALWAYS right. (Consumer Sovereignty.)

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Notes:

The Role of Government

Protector Protect consumer from false advertisement, unsafe products Provider Provide society with infrastructure, schools, parks etc. Regulator Communication, banking, and energy industries are regulated by government Consumer Government buys A LOT

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