In the free-enterprise system of the united states, the government

makes no economic decisions.
makes some economic decisions.
makes most economic decisions.
makes all economic decisions.

The second alternative is correct.

In a market economy, where there is free entry and exit of firms, price is determined by the supply and demand of goods and services. In this case, the government does not act directly as a market player, but as a regulator, which must maintain the proper environment for companies to develop and compete the market through competition, ie price. Thus, consumers benefit. The government takes some economic decisions to favor the economic environment, for example to ensure that there is no agreement, but production decisions are only up to the companies, without intervention.

Makes some economic decisions

Further Explanation:

The other name of free enterprise is free market or free capitalism. It is such type of economic system that is driven by supply and demand. In this system consumers and the private players control the market with little interference from the government. In this government does control over some of the policy decisions that are helpful for the economy of the country. The firms have no central plan for the economy of the nation. Here the person has the freedom to choose the business, where they want to open and operate it. The right of owning the property is with the individual. It is driven by maximizing profits. It also ensures competition between the producers of the goods and the services. Consumers can spend their money freely. In the free market system consumers pays for the goods and the services which they use. The goods are purchased at the lowest price. One of the main characteristics of free enterprise is that individuals have the freedom to choose.  This right is also extended to workers for choosing any kind of employment, the field of work. They produce the highest quality goods and also maximize profit. The entrepreneurs can open any kind of business. It promotes economic growth by encouraging the entrepreneurs for starting a new business. Competition and innovation are also other key traits.

Learn more:

1. Compare and contrast lifestyle choices that positively affect physical fitness with those that negatively affect physical fitness.

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2. Discuss why a physically active job does not guarantee better physical fitness.

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Answer Details:

Grade: High School

Chapter: Free enterprise System

Subject: Social Science

Keywords: Free market, supply, demand, consumers, private players, little interference, no central plan, maximizing profit, lowest price, economic growth.

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