Respuesta :
Answer:
1.Another word to describe free enterprise is capitalism.
2. The five principles on which the U.S. economic system of free enterprise is comprised of is Freedom to Choose Businesses, Right to Private Property, Profit Motive, Competition, and Consumer Sovereignty.
3. The three sectors on which the circular flow model illustrates are Households, Business, and Government.
4. The principle of Freedom to choose businesses means that the person who owns the business has the right to do whatever they want with it. The people who start businesses are called entrepreneurs. There are laws in place to protect customers but a business owner basically has free reign over the company.
5. The principle of Right to private property means that the a person has a right to own land that people aren’t allowed on as long as they don’t mess with anyone else. Private property is capital and not owned by the government but by individuals or companies.
6. The principle of Profit motive means that a person has the right to do things for a profit. The reason for a business is to make money. Their goal is to make something as efficiently as possible to increase the profits.
7. The principle of Competition is that a person has a right to sell something even if someone else is selling it already. You have a right to choose which business to operate. For example, if a company sold strictly shoes and they decide they want to broaden their customer base and start selling clothes as well. They are allowed to do that without asking anybody for permission.
8. The principle of Consumer sovereignty means that a person has the right to choose where to buy things from. A business wants to keep their customers happy to increase their profits. That is where the motto “the customer is always right” comes from.
The three sectors on which the circular flow model illustrates are Households, Business, and Government
9. The household sector of the economy gives taxes and labor to the government sector in return for income and services. They also give labor and payment to the business sector in return for income and goods and services.
10. The business sector gives taxes, goods and services to the government in return for payment and services. They also give income, goods and services to the household sector in return for labor and payments.
11. The government sector gives services and payments to the business sector in return for taxes, goods, and services. They also give income and services to the household sector in return for taxes and labor.
12. While there are laws in place to protect the consumer against businesses that cheat or harm, Americans have the right to decide which type of business to own, and basically, make all the decisions about operating the business.
13. In the U.S. free enterprise system, entrepreneurs have the right to act upon opportunities and try out new ideas and technology.
14. Owners of private property are not permitted to interfere with the property of other people.
15. Profit is the amount of money left over after subtracting business expenses from business income.
