Competition: Competition provides an incentive for businesses to create new and better products and ways of serving customers. For consumers, this means more goods and services to choose from.
Equal Opportunity: In 1776, the Declaration of Independence declared, We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. Binding Contracts: Contract: an agreement between a buyer and a seller Property Rights: Property Rights: the rights of those who own land, buildings, or other goods to use or dispose of their property as they choose Intellectual Property: creations of the mind that have commercial value, such as inventions and works of art Patent: a legal protection that gives inventors the sole right to make, use, or sell their inventions for a fixed number of years Copyright: a legal protection that gives creators and publishers of books, music, software, and artistic works the sole right to distribute, perform, or display that work Profit Motive profit: the money earned by a business after subtracting its operation costs profit motive: the desire to make a profit Limited Government Government intervention in the economy is generally limited to seven areas. Protecting property rights and contracts . The government enforces laws that protect property owners and patent and copyright holders. Promoting the general welfare . The government funds projects and programs that benefit society as a whole. Preserving competition . The government enacts laws that protect and preserve a competitive marketplace Protecting consumers, workers, and the environment . The government requires businesses to ensure that their products do not harm consumers. It also imposes regulations on firms to promote workplace safety and reduce pollution. Stabilizing the economy . The government works to keep the economy growing steadily rather than alternating between periods of boom and bust.
You've reached the end of your free preview.
Want to read all 5 pages?