Which of these is NOT a characteristic of a free-enterprise economy?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. All economic decisions are taken by the economic planners.
The statement "All economic decisions are taken by the economic planners" is NOT a characteristic of a free-enterprise economy. In a free-enterprise economy, also known as a market economy, economic decisions are primarily driven by the forces of demand and supply, with minimal government intervention. Prices, production, and the allocation of resources are determined by the market, and factor rewards are based on the productivity of factors of production, not central planning.