Free enterprise, also known as capitalism or a market economy, is an economic system where most economic decisions are made by individuals and businesses, rather than the government. It's characterized by the private ownership of the means of production and the pursuit of profit.
Here are some key aspects:
<a href="https://www.wikiwhat.page/kavramlar/Private%20Property">Private Property</a>: Individuals and businesses have the right to own property, including land, factories, and resources. This ownership is protected by law.
<a href="https://www.wikiwhat.page/kavramlar/Voluntary%20Exchange">Voluntary Exchange</a>: Transactions occur when both parties willingly agree to trade goods or services. This contrasts with forced or coerced transactions.
<a href="https://www.wikiwhat.page/kavramlar/Profit%20Motive">Profit Motive</a>: Individuals and businesses are driven to maximize their income and wealth. This incentive encourages innovation and efficiency.
<a href="https://www.wikiwhat.page/kavramlar/Competition">Competition</a>: Businesses compete with each other for customers and resources. This rivalry leads to lower prices, higher quality goods and services, and greater innovation.
<a href="https://www.wikiwhat.page/kavramlar/Consumer%20Sovereignty">Consumer Sovereignty</a>: Consumer demand ultimately drives production decisions. Businesses produce what consumers want and are willing to pay for.
Limited Government Intervention: While free enterprise doesn't mean no government, it implies a minimal role. The government's functions generally include protecting property rights, enforcing contracts, providing national defense, and ensuring public safety. Too much government intervention can stifle economic growth.
Advantages of Free Enterprise:
Criticisms of Free Enterprise:
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