Question

What is the relationships between entrepreneurs, consumers and government in a free enterprise system? Include what interactions, rights and responsibilities exists in each group.

Answer 1

Ans: The relationship between entrepreneurs,consumers and the government is that the arrange and control land,financial wealth,workers in order to find a financial gain.when we tell about consumers, consumers have the capacity in economy because at last they decide which products are produced.Finally when we tell about government is a preserver,doner,regulator and costomer.

---Enterpreneurs play a main role in economy,These are the people who have the ability and inventiveness necessary to expect ongoing and upcoming needs and bring more new ideas to the market.They are successful in taking on the chance on some newly established business and they are rewarded with many profits and growth opportunities also increased.And those who fail have to face many losses in the floor of market and they also lose money and close the business. The enterpreneurs facing many problems when they making their own companies.while some enterpreneurs are struggling to get a ground on the small businesses and some of them makes sucess in their path and some of them fail.

---Consumers play main role in the economic system of a nation.Producers would lack one of the key role to produce, that is selling to consumers if the consumer demand decreased.consumers buys the goods for the consumption and for other comercial purposes by paying some amount of money.All the consumers consume their goods directly or indirectly to maximise their needs and satisfaction. If the consumers have limited income they have to satisfy their maximum utility needs by that.And when we talk about a consumer, it seeks to an individual only and the consumers consist of a group of individual and institutions etc.

---The role of government in a free enterprise system is, that the enterprise system is mainly self - regulating.Therefeore government plays a restricted role, but important role allowing all of the individuals to make of the economic decisions.ln many ways the government acts like a lifeguard to the economy.As long as the economy is productive and products are safe ,the government doesnot get invoved in the economy.But when the economy is facing some dangerous situation the government get involved in that problem like a lifeguard.