Question

What are five basic principles found in a free enterprise system?

Answer 1

In a free enterprise or free market system, there are a number of basic principals regarding it.
In it's pure state (which doesn't exist in reality, and where US is the closest example)
1) Governments have no control over the buying & selling of products & services.
2) The "invisible hand" of market supply and demand occurs
3) Governments may only be involved with to provide education, the army, and public health services (and other merit goods)
4) Governments may only provide public goods (such as lampposts) which bring no profit for sales people, as you cannot stop people from using those items.
5) Usually, there's a great difference in the distribution of wealth

And others... 2 of these sound similar, so if you think of anymore points, it would be useful.. But you get the main idea now.

Answer 2

thank you

Answer 3

No problem :)