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Why the factor of incentive is important for a supporter of the free enterprise economic system?
Wiki User
∙ 14y ago
Classical economics, the kind that supports free enterprise, is basically a behavioral science with one rule:
People respond to incentives. If you understand what someone's incentives are, you can understand what they will do.
To answer this question as an essay, here are some subjects to explore: What are incentives? How well do people understand their own incentives? In what ways can people's incentives be changed or controlled?
A supporter of free enterprise wants a system where as many people as possible can understand and respond to their own self interest, as defined by their incentives. Since you are writing this question from the perspective of a supporter, think about things that worry supporters of free enterprise, like government intervention. Government intervention distorts incentives, sometimes creating negative effects in the economy. These are the subjects you will want to talk about.
Wiki User
∙ 14y ago
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Free Enterprise A+
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Why is American Enterprise Day important?
because its our economic system
What was the most important economic enterprise in the American colonies?
The most important economic enterprise in the American colonies was the lumber industry. The American colonies traded many goods including cotton and tobacco.
What is Economic enterprise?
Economic Enterprise describes terminology used concerning the economic development of Indians. An economic enterprise is any business owned by Indians that has been started for profit. Ownership in the enterprise by an Indian, must be over 51 percent in order to be classified as an Economic Enterprise.
The circular flow model of pure capitalism shows how a economic system answers the basic economic questions?
Free Enterprise A+
Because of its economic successes in the 1990s the main supporter and advocate of the global economic marketplace was?
china
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Incentive
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They have a Private Enterprise
What type of economic system answers the basic economic questions in the circular flow?
Free Enterprise
