BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Types of government regulation
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Effects of consumer sovereignty.
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Method of handling competition.
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None of the above.
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Detailed explanation-1: -In capitalist economy, prices of the commodities are affected by market forces of demand and supply which leads to open competition in the economy for both buyers, who compete to satisfy their wants as well as sellers, who compete to sell their goods and earn profits.
Detailed explanation-2: -Role of Price Mechanism in Mixed Economy Here price mechanism will pay an equal role along with the planning authority. Especially in the private sector of such an economy, the price mechanism along with the competing forces helps the economy with an allocation of resources and other such efficient decisions.
Detailed explanation-3: -Characteristics of Capitalism. If economic freedom exists, everyone from producer to consumer has the freedom to enter into or leave the market. Producers can decide what to produce, how to produce, and for whom to produce. They may also decide where to set up their businesses, hours of operation, and who to hire.
Detailed explanation-4: -Free enterprise, or the free market, refers to an economy where the market determines prices, products, and services rather than the government. Businesses and services are free of government control.