Question

The chapter defines private enterprise as a characteristic of market-oriented economies. What would public enterprise be? Hint: It is a characteristic of command economies.

Short answer

The government owns and operates the factors of production (resources and enterprises), which is known as a public enterprise.

Step-by-step solution

Definition

Market Oriented economy:

Companies, prices, and output in a market-oriented economy are naturally governed by demand for goods and services rather than by government: A market-oriented economy could have an unstable future.

Step 2:Explanation

They have yet to accept the idea that public enterprise may play a role in a modern state since it is based on the principle of government-owned businesses rather than individuals and businesses. Public enterprise is when the government owns and operates the factors of production (resources and businesses). The term "public enterprise" refers to a type of business entity owned and operated by the government or another public entity. As a result, it is a project that is owned and controlled by the municipal, state or federal government.