Question

Q 8
Study the bulleted list and answer the question that follows:
• Limited government interference in business
• Prices determined by supply and demand
• Private owners receive the profits
Which type of economy is best described in these characteristics?
(1 point)
Subsistence farming
O Free enterprise
O Mercantilism
Socialism

Answer 1

The characteristics described in the bulleted list best correspond to a **Free enterprise** economy. This type of economy emphasizes limited government interference in business, allows prices to be determined by supply and demand, and enables private owners to receive the profits from their business ventures.