explain atleast three benefits of the free enterprise system?

Answer 1

1. The free market economy in other words, functions automatically, without the complexities and costs of bureaucracy.Economic decisions are done quickly by responding to demand and supply conditions.

2. The free market economy is highly competitive, so the competition between firms encourage lower prices, and are the incentives to become more efficient or more responsive to the wishes of consumers.

3. The more efficient workers work in a free market system, they become valuable human resource with a secured job, while firms profits are maximized, thus helping to increase their wages.

Answer 2

1. It is the most efficient method ever devised for allocation of resources to their highest valued use.
2. It is based on serving your fellow man. Because "free" means free to choose. And you can only sell what someone else actually wants. And you can only sell it for what it is worth to the buyer, and no more.
3. It is the most democratic system. Because you vote with your buying power. If you don't want something don't buy it. If enough people don't buy it. The item will not be produced. And of course the opposite is also true.

Answer 3

- higher productivity because of peoples incentive to work harder.
- Higher GNP becuase of the higher productivity.
- More advances in society as far as technology goes.