Final answer:
In order for a free enterprise system to work, the basic elements needed include economic freedom, competition, voluntary exchange, consumer demand, entrepreneurs, and government.
Step-by-step explanation:
In order for a free enterprise system to work, there are several basic elements that are needed. These include:
- Economic freedom: Individuals have the freedom to make their own economic decisions and engage in business activities.
- Competition: There must be competition in the marketplace to ensure efficiency and innovation.
- Voluntary exchange: Both buyers and sellers must agree to engage in transactions voluntarily.
- Consumer demand: Consumers play a vital role in determining which products are in demand, guiding producers to meet those demands.
- Entrepreneurs: Entrepreneurs are essential in driving innovation and taking risks to start new businesses.
- Government: Government provides regulations and oversight to ensure fair competition and protect consumers.