Question

What constitutional guarantees underlie the American free enterprise system?. .

Answer 1

The constitutional guarantees that underlie the American free enterprise system include individual freedom of consumers and producers, variety of goods, responsive prices, investment opportunities, and the creation of wealth.

Step-by-step explanation:

The constitutional guarantees that underlie the American free enterprise system include:

1. Individual freedom of consumers and producers: This means that individuals have the freedom to make choices as both producers and consumers, allowing for competition and innovation in the market.
2. Variety of goods: The free enterprise system encourages a wide range of goods and services to meet the diverse needs and preferences of consumers.
3. Responsive prices: In a free enterprise system, prices are determined by supply and demand, leading to competitive pricing and the efficient allocation of resources.
4. Investment opportunities: The free enterprise system provides opportunities for individuals to invest in businesses and contribute to economic growth.
5. Creation of wealth: The free enterprise system allows individuals to pursue economic opportunities and generate wealth through their own efforts and abilities.

Answer 2

The Bill of Rights guarantees certain individual freedoms, such as freedom of speech and freedom of religion. The Constitution also guarantees important rights that allow people to engage in business activities. Property Rights – This is the most important of the rights. It is part of the 5th Amendment Rights. 14th Amendment allowed for due process – the government cannot take your property except if there is a public reason. Even under those circumstances, the government must pay you fair value for your property. Taxes Taxation – There are basic rules for taxation that are outlined in the Constitution. The government can only tax the way the Constitution allows it to. Direct taxes have to be apportioned by population so that everyone will pay he same amount. Constitution allows people and businesses to make binding contracts.