Which of the following best describes a private enterprise system?

• A. A system where all goods and services are provided free of charge by the government.
• B. An economic system where individuals and businesses own the means of production and operate for profit with limited government intervention.
• C. An economic system in which the government owns and controls all major industries and resources.
• D. An economy based solely on barter and trade without the use of money.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of a private enterprise system, also known as a market economy or capitalism, where the key characteristic is private ownership of resources and means of production.
2. Step 2: Recognize that in a private enterprise system, individuals and businesses make decisions about production and distribution based on profit motives, rather than government directives.
3. Step 3: Identify that government intervention is limited, meaning the government does not control or own major industries but may regulate to ensure fair competition and protect property rights.
4. Step 4: Compare the given options to the definition of a private enterprise system, noting that options involving government ownership or free provision of goods do not fit this system.
5. Step 5: Conclude that the best description is the one stating that individuals and businesses own the means of production and operate for profit with limited government intervention.