Question

Why is the free enterprise system subject to business cycles?

A. because individuals and businesses acting in their own self-interest make economic decisions

B. because the government plays a role in making decisions about factors such as prices, production, and consumption

C. because of minor fluctuations such as the day-to-day fluctuations of the stock market

D. because the desire for a higher standard of living than that of the previous generation becomes harder to reach

Answer 1

The free enterprise system is subject to business cycles due to individuals and businesses making economic decisions in their own self-interest, government intervention in decision-making, and minor fluctuations in the stock market.

Step-by-step explanation:

The free enterprise system is subject to business cycles due to several factors. One of the main reasons is individuals and businesses acting in their self-interest make economic decisions. This can lead to periods of rapid growth followed by decline or recession. Another factor is the role of government intervention in making decisions about factors such as prices, production, and consumption. Governments often adjust interest rates and implement regulations to control the risk of economic depression. Additionally, minor fluctuations such as day-to-day fluctuations of the stock market can contribute to the business cycles.

Answer 2

Why is the free enterprise system subject to business cycles? A. because individuals and businesses acting in their own self-interest make economic decisions. A free enterprise is an economy where products, prices and services vary based on the the market and not by what the government says. The free enterprise system allows businesses to be free from government control. They are free from communism and able to make their own decisions regarding their business.