Which of the following describes common goals or measures pursued in a free enterprise economy?

• A. Price stability, economic efficiency, freedom
• B. High taxes and heavy regulation
• C. Central planning and government control
• D. Deflation and wage controls

Answer: (A)

In a free enterprise economy, the aims include price stability, economic efficiency, and freedom. Price stability helps people and businesses plan by keeping the value of money predictable and reducing disruptive inflation or deflation. Economic efficiency means resources are used where they are most valued, with competition pushing costs down and quality up, so production matches consumer wants as closely as possible. Freedom covers private property, voluntary exchange, and the ability to start and run businesses, which drives innovation and broad choice for consumers.

The other descriptions don’t fit as well because they imply more government control or short-term policy tools rather than the broad goals of a market system. High taxes and heavy regulation point to substantial government intervention, which limits market freedom. Central planning and government control describe a command economy, not a free market. Deflation and wage controls are policy conditions or tools, not the overarching goals that guide how a free enterprise economy operates.