Question

What is the relationship between democracy and the free enterprise system?

A.The government determines what is produced, how much of an item is produced, and how much an item will sell for.

B.The government does not decide what is produced, but often reviews the level of production to make sure there are enough products available to the public. C.The government controls the economy by placing orders with private companies for goods and services the government needs to serve the citizens' needs. D.The government does not decide what is produced or what items cost, but does play a role in the economy by protecting the public and preserving private enterprise.

Answer 1

The relationship between democracy and the free enterprise system lies in limited government intervention where it acts as regulator, protector, provider, consumer, and promoter, thus fostering a mixed economy that sustains private enterprise.

Step-by-step explanation:

The relationship between democracy and the free enterprise system is such that the government plays limited but important roles in the economy without exercising direct control over it. In a free enterprise system, the government can act as a regulator to ensure fair competition, a protector to safeguard consumer rights, a provider of public goods and services, a consumer by purchasing goods and services from the private sector, and a promoter of national economic goals, reflecting a mixed economic system. The government does not decide what is produced or the cost of items but is involved in economic activities to protect the public and encourage private enterprise.