who controls the economy in a free enterprise system
citizens and businesses?
Yes.
What is another name for unchanged raw materials gathered from land or water?
natural resources
How can individuals in a democracy influence how the government governs?
What does this mean
How can one person make a difference to government?
What do citizens do to try to influence government actions?
In a free enterprise system, the economy is largely controlled by individuals and private businesses. The key principle behind a free enterprise system is that individuals are free to engage in economic activities, such as producing and selling goods and services. This means that individuals have the freedom to start their own businesses, invest capital, and make decisions about what to produce and how to sell it.
There are several factors that influence the control of the economy in a free enterprise system:
1. Consumers: Consumers play a vital role in determining what products and services are successful in the market. Their choices and preferences drive demand, which, in turn, influences the production decisions made by businesses.
2. Businesses: Private companies and entrepreneurs are the driving force behind the economy in a free enterprise system. They are responsible for producing goods and services, creating jobs, and driving innovation. Businesses make decisions regarding production, pricing, investment, and expansion.
3. Competition: Competition among businesses plays a significant role in a free enterprise system. Competition encourages businesses to improve their products, lower prices, and provide better customer service in order to attract consumers. This dynamic keeps the economy efficient and responsive to consumer demands.
4. Government: While a free enterprise system emphasizes minimal government intervention, governments still have a role to play in regulating and facilitating the economy. They create and enforce laws, establish market regulations, protect property rights, and provide public goods and services. However, in a free enterprise system, the government's role is generally limited to preserving a level playing field and ensuring fairness, rather than controlling or directing economic activities.
It's important to note that the degree of control can vary in different countries and economies. While free enterprise systems grant autonomy and control to individuals and businesses, governments may still implement some regulations and policies to maintain economic stability and promote public welfare. Additionally, economic control can shift and evolve over time due to changing circumstances, technological advancements, and societal needs.