Short Answer 
The free enterprise system is characterized by minimal government involvement, promoting private ownership and competition. Incorrect options misinterpret this by suggesting restrictions on ownership and substantial government power, while the correct options highlight the limited limits on property use and the roles of consumers and producers in economic decision-making.
Step 1: Understand Free Enterprise
Free enterprise is a market system where buyers and sellers interact to determine prices, products, and services without government interference. This economic model encourages private ownership and is closely related to concepts like laissez-faire capitalism and philosophical libertarianism. Key characteristics include:
- Minimal government involvement in the economy.
- Wide-ranging opportunities for private ownership.
- Free market conditions that promote competition.
Step 2: Identify Incorrect Options
In evaluating the answers provided, two options stand out as incorrect due to misinterpretation of the free enterprise system. Firstly:
- Option A: It states that private ownership is severely restricted, which contradicts the essence of free enterprise that encourages private ownership.
- Option B: It suggests that the government holds significant power, which is inaccurate as free markets function with minimal government influence.
Step 3: Recognize Correct Options
Options C, D, and E correctly reflect the principles of free enterprise. They emphasize the role of private property and decision-making. Specifically:
- Option C: It correctly states that there are few limits on the use of private property, which is a hallmark of free enterprise.
- Option D: This option indicates that consumers make all economic choices, highlighting the power of consumer demand in the market.
- Option E: It points out that producers also make economic choices, showing the collaborative nature of market decisions between consumers and producers.