ECONOMICS
ECONOMIC SYSTEMS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The government owns and operates all of the businesses and industries
|
|
|
Private citizens own and operate most of the businesses and industries
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -The key ingredient of the free enterprise system is the right of individuals to make their own choices in the purchase of goods, the selling of their products and their labor, and their partici-pation in business structure.
Detailed explanation-2: -Private enterprise is a subset of free enterprise; All free enterprise is private, but not all private enterprise is free. The failure to bear this distinction in mind is what leads to public support of indefensible programs like the Ex-Im Bank.
Detailed explanation-3: -The U.S. is considered the best example of a free enterprise system, but other countries with some version of a free enterprise system include the UK, Singapore, Switzerland, Australia, and Canada.
Detailed explanation-4: -Free enterprise is a type of economy where products, prices, and services are determined by the market, not the government. It’s capitalism, not communism. Things that are free are unconstrained, and a business is an enterprise. So, free enterprise refers to an economy where businesses are free from government control.