A good way to answer these questions is to make plain what free enterprise is not. We should understand up front that it’s possible to have enterprise that isn’t free. Visit a busy North Korean tractor factory and you’ll see investment, resources, employment and even busy people managing other busy people – lots of “activity.” But no one would call such enterprise “free.” That’s because only the government in North Korea can own a tractor factory. Whether or not tractors are made, how many of them are made, what they sell for and whether they work or not—these are all decisions made by those in political power. Their incentives are very different from those of private entrepreneurs who have to invest properly, compete well, price their product and serve their customers or run the risk of going bankrupt.