Free Enterprise

                               

1. What does ‘free enterprise’ mean?

  1. Money
  2. Competition between companies that sell the same product
  3. Profit
 
  1. What is a ‘monopoly’?
  1. Owning a business
  2. Selling lemonade
  3. When one company takes over all of the other companies in the U.S. selling the same product as them
 
  1. What does ‘market economy’ mean?
  1. When prices are allowed to rise and fall without restriction
  2. An ice cream shop
  3. A lemonade stand
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?

 

 

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: