A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.
Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.
Some of the characteristics of a free-enterprise system are;
Citizens have rights to the ownership and use of private property.
The consumers are free to make their economic choices or decisions such as deciding on which product to buy, which goods interest them, where to shop for goods, etc.
The producers are free to make their economic choices or decisions such as deciding on how much is to be charged on a product.
Hence, in a free-enterprise system, producers decide how much to charge.
