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.
 

 

 

 
 
 
 
 

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