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Which of these is NOT a characteristic of a free-enterprise economy?
Question

Which of these is NOT a characteristic of a free-enterprise economy?

A.

Decisions are based on the forces of demand and supply.

B.

Factor rewards are based on the productivity of factors of production.

C.

All economic decisions are taken by the economic planners.

D.

Economic decisions are regulated by the market.

Correct option is C

One characteristic that is NOT part of a free-enterprise economy is that "All economic decisions are taken by the economic planners." A free-enterprise economy, also known as a market economy, relies on market forces rather than central planning to guide economic activity.
- In a free-enterprise economy, decisions are indeed based on the forces of demand and supply (a), factor rewards are based on productivity (b), and economic decisions are regulated by the market (d), emphasizing the minimal role of government interference in economic transactions.

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