ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a market economy, almost everything is owned by individuals and private businesses-not by the government. Natural and capital resources like equipment and buildings are not government-owned. The goods and services produced in the economy are privately owned.

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. The essential feature of capitalism is the motive to make a profit.

Detailed explanation-3: -Characteristics of a Free Market Free economies exist because a significant portion of resources are owned by individuals or companies in the private sector and not a central government agency. In this way, the owners exercise total control over the means of production, allocation, and exchange of products.

Detailed explanation-4: -Private property, freedom, self-interest, competition, minimum government intervention are the characteristics of a market economy.

Detailed explanation-5: -A mixed economy is defined by the co-existence of a public and private sector.