5
AssignmentMultiple Select

Economic Policy

Question 5 • IL-Economics

What are the main goals of economic policy within a free-enterprise system? Check all that apply.

Answer
A
to limit the number of producers that can enter a given market
B
to ensure that the economic needs of citizens are met, such as employment
C
to ensure that the market is fair, allowing for competition and consumer choice
D
to guarantee that all producers are maximizing profits
E
to work toward solving the problem of poverty

Explanation

Economic policy in a free-enterprise system aims to support citizens’ well-being, promote fair competition and consumer choice, and address social problems such as poverty. Limiting how many producers may enter a market would restrict competition, while guaranteeing that every producer maximizes profit is not a goal of economic policy.

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