The private enterprise system encourages government intervention.

Question

Quizplus · Accepted Answer

The private enterprise system is based on the principle of free market competition, where businesses are able to operate with minimal government intervention. In fact, proponents of the system argue that excessive government intervention can stifle innovation and reduce overall economic growth. However, some argue that certain government interventions, such as regulations to protect consumers and the environment, are necessary to ensure a level playing field and prevent negative externalities. Overall, the private enterprise system does not inherently encourage government intervention.

The Private Enterprise System Encourages Government Intervention