1. CHARACTERISTICS OF THE AMERICAN ECONOMIC SYSTEM… Market, Capitalism, Free Enterprise, free Market

2. LIMITED GOVERNMENT “laissez faire” Government involvement in the economy is minimal.

3. 2. FREE ENTERPRISE People are free to own the factors of production and be entrepreneurs if they want, with minimal government intervention
4F'S + =

4. 3. FREE CHOICE Consumers are free to buy what they want, or not buy if they want.

5. CONSUMER SOVREIGNTY The consumer rules the market place….
They answer basic questions…

6. 4. PROFIT INCENTIVE Entrepreneurs strive for profits
4. PROFIT INCENTIVE Entrepreneurs strive for profits! Revenues – Expenses =Profits/losses

7. 5. COMPETITION Lure of profits encourages competition among firms.

8. 6. PRIVATE PROPERTY Needed for free enterprise, profit incentive, free choice, competition, etc….