By definition, a free enterprise economy (also known as: capitalism or a free market economy) is an economic system controlled chiefly by the individuals and private companies instead of the government. Characteristics of a free-enterprise system include economic freedom, voluntary exchange, private property, and the freedom of profit motive. Capitalist societies generally achieve a higher standard of living because of the incentive to work: capitalism prefers harder and more efficient workers. Economic freedom is a principal of a free market economy, which allows people to decide how they will earn and spend their income. Economy
The meaning of private property is those within a capitalist society have the right to buy and sell what they own or produce through market applications. This gives both what they want without the need of government regulation of how much they can trade and at what costs. ic freedom also yields to companies so they may choose which goods and services to produce and how much to charge for them based on the wants, or demands of the people. Competition between producers is permitted and this leads to better quality products. The hardest workers are the ones who remain employed t for it raises standards and the level of production. Through this engagement, both the buyer and the seller are free to trade with one another and make economical or material gains off the trade. A free enterprise economy is based on the ideals that private citizens own business and production. A voluntary exchange allows buyers and sellers to engage freely and willingly in the market economy. Profit motive can be described as people and factors of productions improve their well being by making money as they see fit. This regulates the amount and kind of products produced to accommodate the population. The government has no control on what one buys and sells, and workers can work for whomever they wish with no restrictions. In a wealthy free market economy,...
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