ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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people are free to produce whatever they wish and to buy whatever they can afford.
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the government controls every aspect of the economy.
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the government owns large businesses, but private ownership of small businesses is encouraged.
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there is a mix between different types of economies.
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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: -In a free enterprise economy, goods are produced for those people who are willing and able to buy them. Any good that is owned by an individual or a business. Under free enterprise, individuals and businesses have the right to own property, and they may own as much property as they are willing and able to purchase.
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: -Free enterprise which is also known as a free market economy refers to business activities that are not regulated by the government. There are several free enterprise benefits such as increased freedom, consumer rights, market efficiency, financial security and stability, and economic opportunities.