US Economy

Free Enterprise System

What is an economy?

An economy is the resources of a country, state, region, or community and how the resources are managed.

What is a free enterprise system?

A free enterprise system is one in which businesses have the right to produce any goods or provide any service that they want.

What costs are included in the price of a product?

The costs of the natural resources, machinery, and workers used to make the product are included in the price of a product.

What is a profit?

A profit is the money a business person has left over after all the costs of the business are paid.

Why might a company sell a shirt for $20.00 when it only costs $15.00 to make it?

A company would sell a shirt for $20. 00 when it only costs $15.00 to make it because the company wants to make a profit.

Why is it important for a business to make a profit?

It is important for a business to make a profit so that the business owners can improve the business and buy the things they need and want.

What is supply?

The quantity of an item that sellers are willing to offer at different prices is called the supply.

What is demand?

The quantity of an item that consumers are willing to buy at different prices is the demand.

What are sellers?

A seller is someone who promotes or exchanges goods or services for money

What are consumers?

A consumer is a person who uses goods or services that have been purchased. 

What is supply and demand?

In a free enterprise economy, the price of a product is based on the supply and demand for that product.

Example: The more there is of a product then the lower the price; the fewer products means the price is higher.

Why is it important for people to make careful choices when spending their money?

It is important for people to make careful choices when spending their money because they cannot have everything they want.

What is an opportunity choice?

An opportunity choice is what you give up when you choose one thing over another.

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How can you contribute to the our nation’s economy?

We can all contribute to our nation’s economy. If you buy something, you are a consumer. Every time you buy something, you make a contribution to the economy of the United States.

How do consumers and workers contribute to the economy?

Consumers contribute to the economy by buying goods. Workers contribute by producing goods or services

How can you prepare yourself for work?

You can prepare yourself for work by studying, going to school, and learning certain skills.