Carmen Aguilar Period 5 Free Enterprise Story Cube (bibliography (http…
Carmen Aguilar Period 5 Free Enterprise Story Cube
definition and examples
Free enterprise is also known as capitalism and free market.
During free enterprise, there is usually competition between companies.
Free enterprise is basically when companies can create/make any free economic decisions, and really with only few restrictions from the government
If there is competition, there is most likely lower prices and better quality.
Some countries can be a free enterprise type of government and it seems to be called a socialist government
When one company makes one thing efficiently and the other company does something similar but not as efficiently, the one who made it better will gain more money while the other loses money and is then forced out of the market.
There is only limited government participation. This is because it all depends on certain stuff that companies have to come up with.
Pros and cons of free enterprise
It promotes economic growth
They are allowed to do this for businesses own financial gain. This ends up making the goods and services determined by free market
There is a law of supply that says that if there is a high amount of something then you must lower the price but if there is a product that is in scarcity then you must raise the price.