Hello!
I am going to tell you all that you need to know about free enterprise.
Free enterprise means competition. In this case, competition
means competing for customers or markets. Economics are with us wherever
we go. In our society today businesses and companies are competing
against each other all the time like the picture above. It shows two businesses
selling lemonade. If the first person's price of his/her lemonade goes
down, the second person's may go down as well. Another form of competition
is, when companies target a customer by saying things like, "buy one, get
one free."
Businesses try to produce what they think
customers will buy at the very highest price possible. Price changes take
place all the time. When customers buy more of something, the price will
rise. When customers buy less of something, the price lowers. This is called
a market economy. A monopoly is when one company
will buy all of the other companies in the United States selling the same
product as them. Our government does not allow monopolies. Finally,
let's play a fun game about what we just learned!
1. What does free enterprise mean?
A. Economics
B. Competition
C. Markets
2. What do producers try to produce?
A. What they think customers
will buy
B. Cheap things
C. Expensive things
3. What is one form of competition?
A. Owning a pizza place
B. Selling a shoes
C. Lowering prices
4. What is the meaning of market economy?
A. When a grocery store
raises and lowers the prices of milk
B. A convient store
C. A lemonade stand
5. What is a monopoly?
A. A Milton Bradley
game
B. When an electronic
company buys all of the other electronic companies in the United States
C. A consumer
Congragulations! You have passed the world
of free enterprise. I hope that what you have learned from me, Mega
Money, today will help you with any future tests or problems that you might
ever have concerning free enterprise.
Good Job, that is the
correct answer!
Go back to game...
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