Which of the following is NOT a characteristic of free enterprise?

• A. Competition among businesses
• B. Limited consumer choices
• C. Private ownership of resources
• D. Profit motive as a driving force

Answer: (B)

Limited consumer choices is not a characteristic of free enterprise because one of the fundamental aspects of a free enterprise system is the abundance of choices available to consumers. In a free enterprise economy, businesses compete to attract customers, which leads to a diverse range of products and services. This competition encourages innovation and improvement, ultimately providing consumers with various options to select from based on their preferences and needs.

In a truly free enterprise system, consumer choice is maximized as businesses strive to cater to differing tastes and demands. Other characteristics, such as competition among businesses, private ownership of resources, and the profit motive driving decisions, reinforce the system's effectiveness by promoting efficiency and economic growth. This dynamic environment of choice is crucial for ensuring that consumer desires are met and that businesses can thrive and adapt in response to market signals.