What basic principles are fundamental to American free enterprise?

open opportunity, private property, contracts, voluntary exchange, profit motive, legal equality, and competition

economic freedom, private property, contracts, mandatory exchange, profit motive, legal equality, and competition

economic freedom, private property, contracts, voluntary exchange, business interests, and protection from competition

state-owned property, contracts, voluntary exchange, self-interest, profit motive, and competition

1 answer

The basic principles that are fundamental to American free enterprise include:

  • Open Opportunity: Individuals have the chance to enter the market and compete.
  • Private Property: Individuals and businesses have the right to own and control their property.
  • Contracts: Agreements between parties that are enforceable by law, promoting trust in transactions.
  • Voluntary Exchange: Transactions are made voluntarily in a free market.
  • Profit Motive: The desire to earn a profit drives innovation and economic activity.
  • Legal Equality: All individuals have the same legal rights and protections in the marketplace.
  • Competition: The presence of multiple sellers in the market fosters innovation, quality, and consumer choices.

Thus, the correct answer that includes these principles is:

open opportunity, private property, contracts, voluntary exchange, profit motive, legal equality, and competition.