Free Market Capitalism

Free Market Capitalism

Understanding the 4 characteristics

Poll

COMPETITION is a very important part of a free market economy.

It helps individuals make economic decision.

For example who has the best chicken sandwich?

Multiple Choice

MOTIVATED BY PROFIT: in free market capitalism, all business try to make a profit.

If Tammi bought 100 blow pops for $20 dollars and sold each blow pop for $1 each, what would be her profit?

• $100

• $120

• $80

• $200

How to find the Profit:

Money earned - Money spent = PROFIT

$100 - $20 = $80 (the profit)

Poll

PRIVATE OWNERSHIP: in a free market economy individual citizens can own private property. (The government can not take it away.)

If you could own one of these private properties which would you choose?

Open Ended

ECONOMIC FREEDOM: in a free market economy, citizens have the right to spend their money any way they want.

If you had to spend $1,000 today, what would you buy?