What is the relationship between democracy and the free enterprise system?

Question

A. The government determines what is produced, how much of an item is produced, and how much an item will sell for.
B. The government does not decide what is produced, but often reviews the level of production to make sure there are enough products available to the public.
C. The government controls the economy by placing orders with private companies for goods and services the government needs to serve the citizens' needs.
D. The government does not decide what is produced or what items cost, but does play a role in the economy by protecting the public and preserving private enterprise.

Answer 1

The correct answer that describes the relationship between democracy and the free enterprise system is:

D. The government does not decide what is produced or what items cost, but does play a role in the economy by protecting the public and preserving private enterprise.

This reflects the principles of a free market economy, where the forces of supply and demand typically determine production and pricing, while the government maintains regulations to protect consumers and ensure fair competition.