Question

What are some of the basic principles of free enterprise?

Answer 1

The basic principles of free enterprise include economic freedom, competition, voluntary exchange, private property, and the profit motive.

Step-by-step explanation:

In a free enterprise system, there are several basic principles that govern its operation:

1. Economic Freedom: Both producers and consumers have the freedom to enter into or leave the market. Producers can decide what to produce, how to produce, and for whom to produce. Consumers can decide what to purchase and from whom.
2. Competition: Competition among sellers helps to keep prices low for consumers, and buyers compete with each other to find the best products at the lowest price.
3. Voluntary Exchange: Both buyers and sellers have the freedom to enter into the marketplace to buy or sell products. They engage in voluntary exchange based on their assessments of the value and worth of the products.
4. Private Property: Individuals have the right to own and control their possessions as they wish.
5. Profit Motive: People have the right to risk their money in a business venture or investment, with the expectation of making a profit.

Answer 2

The freedom to choose our own businesses, The right to private property, The profit motive, competition, consumer sovereignty.