Question

1. what is a free enterprise system?

a system in which there is no charge for transportation

a system in which the state controls all new businesses

a system that encourages people to give away goods and services

a system that allows people to own and run their own businesses

Explanation:

Define free enterprise

Using the Economic Freedom knowledge point

A free enterprise system, also known as capitalism or a market economy, is characterized by private ownership of capital goods. In this system, investments are determined by private decision rather than by state control, and prices, production, and the distribution of goods are determined mainly by competition in a free market.

Analyze the options

• Option 1: "a system in which there is no charge for transportation" — Incorrect. Transportation costs still exist and are paid for by consumers or taxpayers.
• Option 2: "a system in which the state controls all new businesses" — Incorrect. This describes a command economy or state-directed system, which is the opposite of free enterprise.
• Option 3: "a system that encourages people to give away goods and services" — Incorrect. This describes a gift economy or charity, not a market-driven commercial system.
• Option 4: "a system that allows people to own and run their own businesses" — Correct. This directly aligns with the core principles of private ownership, individual initiative, and economic freedom.

Answer:

• a system in which there is no charge for transportation
• a system in which the state controls all new businesses
• a system that encourages people to give away goods and services
• a system that allows people to own and run their own businesses (Correct answer)