Ch+3.1

Ch. 3.1 Questions #1-5

b. Voluntary Exchange- This allows people to have the choice of what and when they want to buy and sell rather than being forced to at a certain time or price c. Private Property Rights- The right and privilege to control their possessions as they wish d. Competition- This is the rivalry among sellers to attract customers while lowering their costs, this provides consumers with the choice of a larger variety of goods, most of which are sold at a reasonable price 2. The two constitutional guarantees that underlie in the American free market system are property rights and taxation. 3. Three benefits of the free enterprise system are 4. An example of opportunity cost of a greater government role is when a government uses money that came in through taxes or was borrowed, this then causes the economy to crowd out. 5. As a consumer I decide the fate of businesses, I decide what to buy from where to buy it and how loyal I will be to that certain company.
 * 1) a. Profit Motive- This is important because it is the force that encourages people and organizations to improve their material well-being
 * Open opportunity- The concept that everyone can compete in the marketplace
 * Competition- This is the rivalry among sellers to attract customers while lowering their costs, this provides consumers with the choice of a larger variety of goods, most of which are sold at a reasonable price
 * Voluntary exchange- People may decide what and when they want to buy or sell something