21
QuizMultiple Choice

Competition and Free Enterprise

Question 21 • CA-Economics

What kind of economy uses a free-enterprise system?

Answer
A
a closed economy
B
a command economy
C
a market economy
D
a traditional economy

Explanation

A free-enterprise system lets individuals and businesses make most economic decisions, with prices shaped largely by supply and demand. This describes a market economy. A command economy relies on government direction, while traditional economies follow longstanding customs.

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