American Free Enterprise
Economics Chapter 2 Section 3 p.48-53
Read pages 48-49
Essential Question: Are the roles of the entrepreneur, the consumer,
and the government in the free enterprise system equally important, or
is one more important than the others?
Main Idea: The American economy incorporates the main
characteristics of a free enterprise economy.
1. Which characteristic in the illustration holds the other
characteristics together?
2. What items are included in the category of private property?
Share your answers with you shoulder partner (2 min).
Read page 50
Main Idea: Entrepreneurs are the driving force of the free enterprise system.
3. Why is it economically efficient and necessary for people to keep the
rewards they earn?
Some industries, such as fast-food restaurants, are highly competitive, while
others have little competition (for example, some cities have a single cable
provider).
4. Identify one example of a competitive industry and one example of an
industry with little competition.
5. How do private property rights serve as an incentive in a free enterprise
economy?
Share your answers with you shoulder partner (2 min).
Read page 51
Main Idea: The economy in the United States adapts to consumers’
wants.
6. Why are entrepreneurs considered both spark plugs and catalysts of
the free enterprise economy?
7. How do consumers influence the economy?
Share your answers with you shoulder partner (2 min).
Read pages 52-53
Main Idea: The economic role of the U.S. government is decided by its citizens.
8. What role do consumers play in a free enterprise system?
9. What are four government functions in the U.S. economy?
10. In what situations do you think the cost of government actions outweigh the
benefits?
11. Why do Americans want government to play a role in the economy? Use
specific examples.
12. With all of the ways the government is involved in the U.S. free enterprise
system, why do we still consider the role of government to be limited?
13. How would life be different if individuals could not decide what to buy and
businesses could not decide what to produce?
Share your answers with you shoulder partner (2 min).