ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a pure market economy, privately-owned businesses do not share their profits with anybody else. As there is essentially no government interference, these business owners became sole controllers of their brands and are free to define their sales guidelines.

Detailed explanation-2: -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.

Detailed explanation-3: -In free markets, also called laissez-faire economies, markets operate with little or no regulation.

Detailed explanation-4: -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-5: -There is a role for government in a market economy. Government provides certain goods and services. These services are paid for by taxes, and include such things as providing for the national defense, protecting the environment, and protecting property rights.