Question

a characteristic of free enterprise is private ownership. what is it?
a characteristic of free enterprise is individual initiative (work hard, get something in return). what is it?
a characteristic of free enterprise is a profit motive. what is it?
a characteristic of free enterprise is competition (lower prices/ better products). what is it?
a characteristic of free enterprise is consumer sovereignty. what is it?
in a mixed economy of capitalism, there will be both government regulation and free enterprise. what does this mean?

reflection questions – democracy & free enterprise

1. how does a free enterprise system strengthen or challenge democracy in america today?
2. do you think economic freedom should have limits in a democracy? why or why not?
3. can a democracy survive if economic inequality continues to grow? explain your reasoning.
4. how do your personal choices as a consumer or voter influence both the economy and democracy?
5. which do you think people value more today—political freedom or economic freedom? what does that say about our society?

Explanation:

1. A free - enterprise system can strengthen democracy by promoting economic growth, which can lead to more resources for social programs and a higher standard of living for citizens, potentially increasing their satisfaction with the democratic system. It can also challenge democracy if large corporations gain too much political influence through campaign financing or lobbying, undermining the equal voice of citizens.
2. In a democracy, economic freedom may need limits to prevent exploitation, ensure fair competition, and address social inequalities. For example, anti - trust laws prevent monopolies from stifling competition, and minimum - wage laws protect workers from being underpaid.
3. If economic inequality grows too large, it can threaten democracy. The wealthy may have disproportionate political power, and the poor may feel disenfranchised, leading to social unrest and a breakdown of the democratic consensus.
4. As a consumer, choices can drive market demand and influence the success of businesses. As a voter, choices can determine government policies related to the economy and social welfare, thus impacting both the economy and democracy.
5. The answer may vary. If people value political freedom more, it may indicate a strong desire for civil liberties and self - governance. If economic freedom is more valued, it could suggest a focus on individual wealth - building and free - market principles.

Answer:

1. A free - enterprise system can both strengthen and challenge democracy. It can strengthen it through economic growth and challenge it through corporate political influence.
2. Economic freedom should have limits in a democracy to prevent exploitation and ensure fairness.
3. A democracy may struggle to survive if economic inequality continues to grow due to potential political power imbalances and social unrest.
4. Consumer choices influence the economy, and voter choices influence both the economy and democracy through policy - making.
5. It depends; more value on political freedom may indicate a focus on civil liberties, while more value on economic freedom may suggest a focus on individual wealth - building.