Question

Explain in a paragraph the connection between capital, capitalism, and free enterprise

Answer 1

Capital refers to actual currency that individuals use to buy materials within a society. This exchange of currency and goods is an essential part of the capitalism system. Capitalism is an economic system in which there is little government interference and relies on competition among businesses. Competition among businesses is what makes up the free enterprise system, as businesses compete through advertisements and low prices in order to atract custmers.

Answer 2

One such way to link this ideas would be to note that free enterprise allows people to come up with ways to competitively sell goods and services, which allows them to raise and invest capital, which is the essence of capitalism.