Which factor is a major advantage of free enterprise economies compared with centrally planned economies: Slower rate of change in business cycles Greater variety in consumer choice More equitable distribution of goods More extensive social welfare programs

Question

Which factor is a major advantage of free enterprise economies compared with centrally planned economies: Slower rate of change in business cycles Greater variety in consumer choice More equitable distribution of goods More extensive social welfare programs

Answer 1

This question structurally can be addressed by understanding the traits of free enterprise economies and centrally planned economies. A Free enterprise economy is where the businesses are free to make their own decisions based on the market dynamics without government interference in productions and pricing decisions. On the other hand, a centrally planned economy is one where the state controls production and allocation of resources. It's second option proposes one of the essential advantages of Free enterprise economies. Free enterprise economies, for their operation's footing, offer a greater variety of consumer choices, since businesses compete to get the attention of the consumers and hence aim at providing a plethora of consumer choices.

Question

Which factor is a major advantage of free enterprise economies compared with centrally planned economies: Slower rate of change in business cycles Greater variety in consumer choice More equitable distribution of goods More extensive social welfare programs

Answer

Answer

Explanation