Free Enterprise

East or West Free Enterprise is the best

Introduction

Free Enterprise is also known as Capitalist or Market Economy. Market Economy is based on consumers demand, so you can buy what you want. Capitalist economy in practice is not completely Free Enterprise.

The Facts

Government is only involved in only protection and safety regulation. "Invisible Hand" guides free enterprise:

1. Competition, 2. Profit Motive, and 3. Scarcity (supply and demand)

There are four aspects of Free Enterprise Economies:

1. Business (stock market)

a. Organize goods and services, b. Individuals can create, c. Built for profit

2. Market (supply and demand)

a. Places where buyers and sellers meet, b. Consumers buy want, based on desire and price, and c. Pricing is based on demand and profit.

3. Households - where and how consumers make decisions

4. Government

Significance

According to "Free Enterprise: The Economics of Cooperation," published by the Federal Reserve Bank of Dallas. Many countries are following free enterprise principles to grow their economies as quickly as possible.
American Free Enterprise