One of the key characteristics of the U.S. free enterprise system is:A.limited competition between large businesses in each industry.B.governments deciding which goods will be produced.C.businesses making decisions based on the profit motive.D.strict limits on the kinds of products available to consumers.
Question
One of the key characteristics of the U.S. free enterprise system is:A.limited competition between large businesses in each industry.B.governments deciding which goods will be produced.C.businesses making decisions based on the profit motive.D.strict limits on the kinds of products available to consumers.
Solution
The key characteristic of the U.S. free enterprise system is C. businesses making decisions based on the profit motive.
Here's why:
A. Limited competition between large businesses in each industry: This is not a key characteristic of a free enterprise system. In fact, free enterprise encourages competition, not limit it.
B. Governments deciding which goods will be produced: This is a characteristic of a command economy, not a free enterprise system. In a free enterprise system, the market (consumers and businesses) decides which goods will be produced.
C. Businesses making decisions based on the profit motive: This is a key characteristic of a free enterprise system. Businesses are free to pursue profits by responding to market signals (what consumers are willing to buy).
D. Strict limits on the kinds of products available to consumers: This is not a characteristic of a free enterprise system. In a free enterprise system, businesses are free to produce a wide variety of goods and services, and consumers are free to buy them.
Similar Questions
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A free enterprise system is also called ____________ or a market economyResponsescapitalismcapitalisma mixed economya mixed economycommunismcommunisma dictatorship
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