Role of the Entrepreneur Very important

person in economy Organizes and

manages factors of production

Starts new businesses Motivated by profit

incentives

Role of the Consumer Consumers help

determine which products are produced

If consumers reject the product firm may go out of business

Consumer sovereignty-describes role as “ruler” of market

Role of the Government Government-national,

state, or local has a role to reflect the desires & goals of its citizens

Government’s Roles Protector-the U.S.

enforces laws against false advertising, impure food and drugs, environmental hazards, and unsafe automobiles.

Government’s Roles (continued) Provider and Consumer-

national government protects all citizens (national defense)

State governments provide education and public welfare

Local governments provide parks, libraries, bus services, etc.

Governments Roles (continued) Regulator-

government protects competition in the marketplace.

It oversees interstate commerce, communications, industries such as banking and nuclear power.

Government’s Roles (continued) Promoter of National

Goals-government reflects the will of a majority of people

People are able to achieve economic goals