Free Enterprise Simulation
What are the characteristics of an
economy based on free enterprise?
What is Free Enterprise?
Foundations of Free Enterprise
CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in
businesses of their choice in hopes of making money (profit!)
Businesses are FREE
to operate with
Businesses can keep
little
government
regulation
& grow the
company
Relatively Low
Taxes allow
businesses to invest
more capital
Competition
Profit Motive
Private Property
Relatively Low taxes
Economic Freedom
PROFIT to reinvest
Ownership of private property
(and other assets) by individuals or
businesses allows full control of
decision making
COMPETITON
fosters product
development and
lower pricing – good
for business and
customers!
Businesses’ product
decisions (quality,
quantity & price) are
driven by
CUSTOMERS
Paper Airplane Challenge
• Object: The team or teams with the greatest
number of airplanes through the hoop wins.
• Timetable:
Each team will have five minutes
to design their "ideal" airplane(s).
All planes manufactured during
this time cannot be used when the
competition begins.
After the R&D time is over, the game will begin.
Paper Airplane Challenge
• Rules:
Only one person may throw the airplanes. That
person must be behind the line in order for the
plane to count.
Each plane must have the team number on it.
The plane must resemble a plane (two wings, and
a nose). Paper balls do not count.
When the game is over, you must immediately
return to your seat, sit quietly and wait for
instructions.
A violation of any rule will lead to disqualification.
In your groups . . .
• Discuss:
What elements of Free Enterprise did you see
reflected during the activity?
Did you change your strategy at all during the
course of the game? Why or Why not?
What could your team have done to perform
better?
In your groups . . .
• Discuss:
In your opinion, which of the 5 characteristics of
the free market system is most important?
How is the U.S. Constitution a statement of our
national economic goals?
What would you find most attractive about
owning your own business? What would be least
attractive?
QuickWrite #8
• Mercantilism is/is not
different than free-enterprise
because…