Free Enterprise

By: Westbrook & KD (Nathan/Terryo)

Definition/Infomation

Free enterprise refers to an economy that allows private businesses the freedom to organize and operate competitively for a profit without government interference, regulation, or subsidy. The main characteristics of a free enterprise economy are market competition, generation of profit, and the law of supply and demand.

(Free Enterprise is economic system in which private business operates in competition and largely free of state control.

What is the purpose of a free enterprise system?



A fundamental purpose of the free enterprise system is to give consumers the freedom to make their own economic choices. Through their economic dealings with producers, consumers make their desires known.

Common 2 questions asked about free enterprise?

1. What goods will be produced?

Business firms will produces the good that the customer purchase.

2.How will the goods be produced?

Individuals who own and manage business firms decide how the goods are produced.


The Promise of Free Enterprise