BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A true free market economy is an economy in which all resources are owned by individuals. The decisions about the allocation of those resources are made by individuals without government intervention. There are no completely “(2) free-enterprise “ or market economies.

Detailed explanation-2: -Most commonly, market economies feature government production of public goods, often as a government monopoly. But overall, market economies are characterized by decentralized economic decision making by buyers and sellers transacting everyday business.

Detailed explanation-3: -What Is a Simple Definition of a Free Market Economy? A free market economy is one without government intervention or regulation. In a purely free market, buyers and sellers arrive at prices based only on supply and demand.

Detailed explanation-4: -The free market economy definition is also known as the truest form of capitalism, as profit is what drives all production, supply, and demand which forces businesses to be as efficient as possible.

Detailed explanation-5: -People make choices because they cannot have everything they want. All choices require giving up something (opportunity cost) Economic decision-making requires comparing both the opportunity cost and the monetary cost of choices with benefits.