Free Enterprise Economy

Essay by EssaySwap ContributorUniversity, Master's February 2008

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The economy of the United States thrives on people being able to choose the goods and services that they wish to purchase. This is because the United States? economy is a market economy, in which people and businesses act in their own best interest to better improve their own profits. The United States practices a particular type of market economy known as capitalism. Capitalism involves people owning the factors of production. The components of capitalism that make it work are; economic freedom, the voluntary exchange of products and services, the right to private property, and the motive to gain profit. These four things help the economy, while also letting consumers save money, and businesses continue to gain a large profit.

Economic freedom means that a person has the ability to choose the type of work they would like to do. A adult in a city may decide between several places to work.

They may choose to work in a variety of different places in that city or cities around. They can also are able to quit their job and choose another if they wish to do so. This helps people to work in the area they are more skilled in. This also creates opportunities for promotions and other positions, as a person becomes more skilled in their job field.

When buyers and sellers interact freely it is known as voluntary exchange. Consumers have the right to choose where they want to buy a product. When going to the convenient store, a person has many options as to what convenient store they will go to. They may base their decision on convenience, prices, or customer service. People may also choose what shoe store they will buy their shoes from. They can choose to buy expensive clothes, or they may choose to...

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