20
QuizMultiple Choice

Economic Policy — Quiz

Question 20 • Personal Finance and Economics

Which statements describe a free enterprise system? Choose four correct answers.

Answer
A
Citizens can accumulate wealth.
B
Supply and demand drives production.
C
Citizens can own property.
D
Consumers and producers make their own decisions.
E
The government sets prices and wages.
F
The government employs all workers.

Explanation

In a free enterprise system, consumers and producers make their own economic decisions, and supply and demand help determine what is produced. Citizens can also own property and accumulate wealth. Government control of prices and wages or employment of all workers are not defining features of this system.

AI-written and checked against the verified answer.

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