BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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economic incentive
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freedom of choice
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free enterprise
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private property
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Detailed explanation-1: -A free enterprise system is an economic system where a government places very few restrictions on the types of business activities or ownership in which citizens participate. This type of system is often referred to by others as a free market, or capitalism.
Detailed explanation-2: -In Western countries, free enterprise is associated with laissez-faire capitalism and philosophical libertarianism.
Detailed explanation-3: -One of the most important characteristics of a market economy, also called a free enterprise economy, is the role of a limited government. Most economic decisions are made by buyers and sellers, not the government. A competitive market economy promotes the efficient use of its resources.
Detailed explanation-4: -Capitalist economy is the suitable other name for market economy because in the capitalist kind of economics, the price is determined by the market forces i.e. by the market forces of demand and supply and no government intervention exists.
Detailed explanation-5: -An economic system based on the market forces of supply and demand with no external interferences from the government.