Question

Briefly summarize the free enterprise system.

a. A system where businesses are owned and operated by the government.
b. An economic system where individuals own and operate businesses for profit.
c. A system where all businesses are run by a central authority.
d. An economic system focused on communal ownership of production.

Answer 1

The free enterprise system is an economic system where individuals own and operate businesses for profit. It is characterized by private ownership of businesses and economic freedom for both consumers and producers. The benefits of the free enterprise system include individual freedom for consumers and producers, a variety of goods, responsive prices, investment opportunities, and the creation of wealth.

Step-by-step explanation:

The free enterprise system is an economic system where individuals own and operate businesses for profit. In this system, there is private ownership of businesses and economic freedom for both consumers and producers. It is characterized by competition, voluntary exchange, and limited government interference in the marketplace. The benefits of the free enterprise system include individual freedom for consumers and producers, a variety of goods, responsive prices, investment opportunities, and the creation of wealth.