Question

Profit motive is a characteristic of a free enterprise economy. What does it drive individuals and businesses to do? a) Maximize losses

b) Minimize production
c) Maximize profits and financial gains
d) Avoid economic activities

Answer 1

The profit motive in a free enterprise economy drives individuals and businesses to maximize profits and financial gains.

Step-by-step explanation:

The profit motive in a free enterprise economy drives individuals and businesses to maximize profits and financial gains. When individuals and businesses have the opportunity to make profits, they are motivated to engage in economic activities that generate revenue and minimize costs. This can include increasing production, finding ways to reduce expenses, and exploring new markets and opportunities. Ultimately, the goal is to increase the overall profitability of the business and create value for shareholders and owners.