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, potentially increasing political stability. It can also challenge democracy if large corporations gain too much political influence through lobbying and campaign financing.
2. In a democracy, economic freedom may need limits to ensure fairness, prevent monopolies, and protect the environment and public welfare. For example, regulations on pollution from businesses or anti - trust laws to prevent market dominance.
3. If economic inequality grows too large, it can undermine democracy. The wealthy may have disproportionate political power, and the poor may feel disenfranchised, leading to social unrest and a breakdown in the democratic process.
4. As a consumer, choices can drive market demand, influencing what products are produced and how resources are allocated. As a voter, choices can influence government policies related to the economy, such as tax policies and regulations.
5. People's values may vary, but if political freedom is more valued, it may suggest a society that prioritizes civil liberties and political participation. If economic freedom is more valued, it may indicate a focus on individual wealth - building and free - market principles.

Answer:

1. A free - enterprise system can both strengthen and challenge democracy in America today. It can strengthen it through economic growth and challenge it through corporate political influence.
2. Economic freedom may need limits in a democracy to ensure fairness and protect public interests.
3. A democracy may struggle to survive if economic inequality continues to grow due to unequal political power and social unrest.
4. Consumer choices influence the economy, and voter choices influence economic policies in a democracy.
5. People's values between political and economic freedom vary, and it reflects different priorities in society.