BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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economic choices.
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government regulation.
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product prices.
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the extent of pollution.
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Detailed explanation-1: -In a private enterprise economic system, the interaction of supply and demand primarily determines:a. product prices.
Detailed explanation-2: -A market economy is a type of economic system where supply and demand regulate the economy, rather than government intervention.
Detailed explanation-3: -A private enterprise system is based on the belief that when people are free to make economic choices and to set economic goals, they work harder to achieve those goals. These citizens also believe in limited government control and freedom of employment.
Detailed explanation-4: -Market economies work using the forces of supply and demand to determine the appropriate prices and quantities for most goods and services in the economy.
Detailed explanation-5: -As an economic system, private enterprise is characterized by competition, open markets, private ownership, and private initiative. Producers take production initiative on the basis of price and profit-and-loss signals essentially given by consumers.