The free enterprise system primarily supports which principle?

The free enterprise system primarily supports which principle?

• A. Government protects the rights of businesses
• B. Government owns all resources
• C. Prices are fixed by the government
• D. Taxes fund universal health care

Answer: (A)

Private property rights and the freedom to conduct voluntary exchanges are what a free enterprise system rests on. The government’s main job is to protect those rights and enforce contracts, creating a safe framework for individuals and businesses to invest, compete, and trade. In this setup, resources aren’t owned by the government, prices aren’t fixed by the state, and health care funding isn’t what defines the system—those ideas belong to different economic models. So the best statement is that the government protects the rights of businesses to own property and operate within a market.

Private property rights and the freedom to conduct voluntary exchanges are what a free enterprise system rests on. The government’s main job is to protect those rights and enforce contracts, creating a safe framework for individuals and businesses to invest, compete, and trade. In this setup, resources aren’t owned by the government, prices aren’t fixed by the state, and health care funding isn’t what defines the system—those ideas belong to different economic models. So the best statement is that the government protects the rights of businesses to own property and operate within a market.