Question

Which principle of the American Free Enterprise System is best represented by the following statement? "Buyers and sellers can easily buy and sell goods."

Answer 1

A free enterprise is an economic system where few restrictions are placed on business activities and ownership. In this system, governments generally have minimal ownership of enterprises in the market place. This system aims for limited restrictions on trade and minimal government intervention.

The U.S. economic system of free enterprise operates according to five main principles: the freedom to choose our businesses, the right to private property, the profit motive, competition, and consumer sovereignty.