BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In free market economy, prices of the commodities are affected by market forces, i.e., demand and supply. Therefore, the market provides freedom of choice to both supplier and consumer.

Detailed explanation-2: -Central to the concept of a capitalist economy is the freedom to choose a product from among various competitors’ offerings. Using the principles of competition and the invisible hand of supply and demand, consumers in capitalist economies should have the greatest freedom of choice available.

Detailed explanation-3: -There is more efficiency in the capitalist economy as the products are produced according to the demand of the consumers. There is less intervention from the government or bureaucratic interference. There is better scope for innovation as companies look to obtain a major part of the market with their offerings.

Detailed explanation-4: -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-5: -Capitalism and socialism are formal economies that differ based on the role of the government and equality of economics. Capitalism affords economic freedom, consumer choice, and economic growth. This type of economy, however, may promote monopolies and inequality and lead to an economic recession.