Final answer:
Economic systems answer what, how, and for whom to produce, with free enterprise relying on market forces and private ownership.
Step-by-step explanation:
Different economic systems manage scarcity and resource distribution by answering the fundamental economic questions: what to produce, how to produce, and for whom to produce. In a free enterprise system, also known as capitalism, market forces such as supply and demand and competition determine the allocation of resources.
The government's role is minimal, allowing private ownership and economic freedom. In contrast, a socialist system has a significant government role in the distribution of resources, aiming for equitable distribution and sometimes owning the means of production.
All economic systems strive to manage the production, consumption, and distribution of goods and services with varying degrees of control. The economic spectrum ranges from free enterprise to communism, determining the forces that influence the distribution of goods and services.