This book will help you to understand our country s free enterprise

economic system--a subject that is very important in your life. Take

some time to think about the many ways in which your life is af-

fected by economic matters. In the free enterprise system, the

prices you pay for records, for jeans, for concert tickets, or for gas-

oline; the pay you earn for the work you do; and the choices you

make in planning a career are all affected by economic factors. The

economy affects what courses ere offered in your school and the

number of students in your classes. The availability of part-time jobs

in your area is also shaped by economic matters.

Every day you are confronted with information on economic

issues. You read or hear about subjects ranging from energy and tax

problems to government spending end the causes of unemployment.

And each day you must make a range of economic decisions. The

decisions that you make affect the overall economy. This book will

enable you to better understand the economic information that you

receive and will help you to make wise economic decisions.

The free enterprise system in America i$ a distinct system in

which the citizens, rather than a central authority, are largely re-

sponsible f~r making economic decisions. We live in a free country

where citizens, acting in their own self-interest, direct how re-

sources should be used. Our economy is based on the private own-

ership of property and on freedom of enterprise. Americans have

the right to choose their own jobs. They are also free to save, to in-

vest, or to spend their incomes in the ways that they choose. To

become afull participant in the economy--as a producer end as a

consumer--you must have an understanding of the organization and

operation of the economy. The material in this book will provide you

with the knowledge and insight needed to develop this under-

standing.