In one to two sentences, define open opportunity, consumer sovereignty, and voluntary
exchange, and explain how they contribute to the availability of different goods in the
marketplace in the U.S. free enterprise system. (2 points)
- Open opportunity refers to the principle that everyone has the chance to compete in economic transactions, offering goods or services, and taking part in the marketplace.
- Consumer sovereignty refers to the power of consumers to determine the types and quantities of goods and services produced by their purchasing decisions.
- Voluntary exchange is the concept of individuals willingly participating in transactions and trade with each other, based on their own self-interests and preferences.
These three principles contribute to the availability of different goods in the US free enterprise system by promoting competition among producers, prompting them to offer a wide variety of products to attract customers. Consumers, having the power to choose, influence the market by demanding or rejecting certain goods, which leads businesses to adapt their offerings to better satisfy consumer preferences, thus creating a diverse range of goods in the marketplace.