GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In a private enterprise economic system, the interaction of supply and demand primarily determines:
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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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Explanation:
Detailed explanation-1: -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-2: -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.
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