Question
D4 4 Which feature is a characteristic of the free enterprise system? Competition is viewed as a hindrance to growth. Workers' wages are set by the central government. The means of production are privately owned. Business profits are shared with the working class.
Answer
4.4
(233 Votes)
Imogen
Professional · Tutor for 6 years
Answer
C
Explanation
The question is asking about the distinct features of a free enterprise system. An understanding of the different kinds of economic systems is required to answer this question. Here are the given choices:A. 'Competition is viewed as a hindrance to growth.' This is incorrect because a free enterprise system thrives on competition. Competition allows businesses to improve their products or services which benefits consumers. B. 'Workers' wages are set by the central government.' This is wrong since in a free enterprise system, wages are controlled by the market, particularly the forces of supply and demand, not the government.C. 'The means of production are privately owned.' The free enterprise system is also known as capitalism. In such a system, private individuals or businesses own the means of production. They decide on the production process, and the various facets such as when, where, and how to produce.D. 'Business profits are shared with the working class.' Incorrect, profit does not necessarily need to be shared with the working class in a free enterprise system. How profit is allocated is determined by the private business owners.