Which of the following best summarize the difference between a free enterprise (capitalist) economy and a socialist (communist) economy?
In a free enterprise or capitalist economy, the government controls prices.
In a free enterprise or capitalist economy, private individuals own most businesses. In a socialist or communist economy, the government regulates and owns most businesses.
In a socialist or communist economy, there are no government regulations.
In a free enterprise or capitalist economy, consumers have fewer choices of products to buy.