Which term describes an economic system with minimal government control, allowing private individuals to own businesses?

Which term describes an economic system with minimal government control, allowing private individuals to own businesses?

• A. Free Enterprise
• B. Communism
• C. Feudalism
• D. Absolute Monarchy

Answer: (A)

Free Enterprise describes an economic system where private individuals can own businesses and the government exercises limited control. In this setup, people can start and run companies, compete in markets, and prices are determined by supply and demand. The government's primary role is to enforce laws and protect property, not to direct what gets produced or set prices. This fits the description of minimal government involvement paired with private ownership. This differs from communism, where the state owns the means of production and plans the economy; from feudalism, a historical system based on land and obligations rather than modern market activity; and from an absolute monarchy, which is a political arrangement about who rules, with varying degrees of economic control.

Free Enterprise describes an economic system where private individuals can own businesses and the government exercises limited control. In this setup, people can start and run companies, compete in markets, and prices are determined by supply and demand. The government's primary role is to enforce laws and protect property, not to direct what gets produced or set prices. This fits the description of minimal government involvement paired with private ownership.

This differs from communism, where the state owns the means of production and plans the economy; from feudalism, a historical system based on land and obligations rather than modern market activity; and from an absolute monarchy, which is a political arrangement about who rules, with varying degrees of economic control.