Also known as Capitalism, what economic system is based on free actions of producers and consumers? a. Bull Market
b. Free Enterprise
c. Mercantilism
d. Corporations

b. Free Enterprise

Explanation:

A "free enterprise" is dependent on the economy's supply and demand. It provides both the consumers and the producers the freedom in doing business transactions. The producers are free to produce what they want while the consumers are free to buy what they want. This also means that businessmen have the option to choose what business they want to open and employees have the option to choose what job they want. Such kind of economic system drives competition. For example, if the demand for leather shoes rises, then many of the businesses will be inclined to produce the same product. This gives the consumer many options. Businesses will then try to become more creative in marketing the same product at a lower cost in order to attract more consumers.

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