Chapter 18, Lesson 3. Capitalism and Free Enterprise. The American market economy is huge. It accounts for about 1/5 of all the economic activity in the world! One of the things that has made this possible is capitalism.
Capitalism and Free Enterprise
In the United States, we place a high value on the freedom to make our own economic decisions.
The activity that takes place in markets is known to economists as voluntary exchange.
In a capitalist economy, people risk their savings by investing in businesses, whether their own or someone else’s.
Under capitalism, people and businesses have private property rights.
In 1776 Adam Smith published a book called The Wealth of Nations which is considered to be the foundation of our economic system.