ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A market economy has freedom of choice and free enterprise. Private entrepreneurs are free to get and use resources and use them to produce goods and services. They are free to sell these goods and services in markets of their choice.

Detailed explanation-2: -Consumer sovereignty is the idea that b/c consumers are free to purchase what they want and to refuse products they do not want, they have the ultimate control over what is produced.

Detailed explanation-3: -Answer and Explanation: The free-market system cannot exist without government regulation because of the problems of externalities. When a transaction affects uninvolved parties third parties in a positive or negative way, it can reduce the creation of public goods or cause harm that is not captured by the trade.

Detailed explanation-4: -A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.