Question 32
Economic SystemsWhich of these would not be included in the fundamental principles of a free enterprise economy?
- A.Private ownership of factors of production
- B.The right to organize factors for productive purposes
- C.The right to make private profit
- D.Government's control of the mobility of factors of production
- E.Government's efforts to encourage competitive capitalism within the laws of the country.
Show the answer and explanation
Answer: D (Government's control of the mobility of factors of production)
Explanation
Free enterprise rests on private ownership, profit and free movement of resources; government control of factor mobility goes against it.