Which economic system is characterized by the means of production being mostly privately owned and operated for profit?

• A. Barter
• B. Mixed economy
• C. Free enterprise system
• D. Command economy

Answer: (C)

The main idea here is ownership and motive behind producing goods and services. A free enterprise system means the means of production—like factories, land, and resources—are owned by individuals or private firms, and they operate them to earn profits. Prices and production decisions come largely from market forces—competition and voluntary exchanges—rather than from a central planner. The government's role is typically limited to enforcing rules and providing public goods, not owning or directing most production. Bartering describes a method of exchanging goods and doesn’t define who owns resources; a mixed economy blends public and private ownership, so it isn’t characterized as mostly privately owned; and a command economy is dominated by state ownership and centralized planning, not private ownership.