ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Private property, economic freedom, economic incentives, competitive markets, and the limited role of government are the characteristics of a free enterprise system.

Detailed explanation-2: -Answer and Explanation: The correct answer is choice a “individual or corporate ownership of capital goods"; The U.S free enterprise system allows individuals or corporations to own capital goods because it limits the government’s intervention in diverse business operations.

Detailed explanation-3: -Government has the coercive power to maintain law and order, protect people’s right to own property and enforce voluntary contracts people enter into. In essence, government provides the umbrella under which the free enterprise system operates.

Detailed explanation-4: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.