Final answer:
The U.S. free enterprise system is characterized by incentives, economic freedom, and the limited role of government.
Step-by-step explanation:
The U.S. free enterprise system has several basic characteristics that include incentives, economic freedom, and the limited role of government.
- Incentives: In the free enterprise system, individuals are motivated by the possibility of making profits. This motivates them to work hard and take risks to start businesses and innovate.
- Economic Freedom: The free enterprise system provides individuals with the freedom to make economic decisions, such as what to produce, how to produce, and for whom to produce. This allows consumers to choose what goods and services they want to buy and businesses to operate based on market demands.
- Limited Role of Government: In the U.S. free enterprise system, the government's role is limited to creating laws and regulations that protect property rights, enforce contracts, and ensure fair competition. The government does not control the means of production or dictate prices.