1. What does ‘free enterprise’ mean?
Competition between companies that sell
the same product
What is a ‘monopoly’?
Owning a business
When one company takes over all of the
other companies in the U.S. selling the same product as them
What does ‘market economy’ mean?
4. Bill went to the grocery store to buy
a candy bar. When he got there he had a hard time trying to decide which
one to buy. He found all different kinds that he would like to get. Bill
saw a chocolate candy bar for .99 cents and the same one made by another
company for .95 cents. Is this a form of competition and why?
When prices are allowed to rise and fall
An ice cream shop
A lemonade stand
5. Give one example of a monopoly:
6. Mary bought a tennis racket for
$45.00. Three weeks later she that the exact same one was priced at $40.00.
This is called a ‘market economy’. Why would this company make the price
of their tennis racket go down? Explain: