Participants in the economy

Question 1

Explain what a free enterprise economy does to Australia.

Answer 1

A free enterprise economy is where individuals can establish a business to create profit and is basically producers supplying goods and services to consumers. Although the government and financial institutions play an important role to our economy as well.

Question 2

Identify the 4 key participants in our economy.

Answer 2

The four key participants in our economy include producers (businesses), consumers (household/labour resources), the government and financial institutions (banks)