A free enterprise economy is an economic system in which individuals and businesses are free to operate and compete with each other without government interference. There are several other terms used to describe this type of economy, including market economy, capitalism, and free market system. These terms all refer to the same concept of economic freedom and private ownership of resources. In a free enterprise economy, prices are set by supply and demand, and there is no central authority dictating what goods or services can be produced. This system promotes innovation and competition, leading to a greater variety of high-quality products and services for consumers.