ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The free market is an economic system based on supply and demand with little or no government control.

Detailed explanation-2: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

Detailed explanation-3: -A market economy, also known as a free market or free enterprise economy, is a system in which economic decisions, relating to things such as the prices of goods and services, are determined by supply and demand.

Detailed explanation-4: -Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.

Detailed explanation-5: -In this system, competition controls the whole market like an ‘invisible hand’. As the State does not interfere, this system is also known as Free economy.