ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A market economy relies on an efficient market in which to sell goods and services. A market is said to be efficient when all buyers and sellers have equal access to the same information about prices, supply, and demand. As a result, price changes are pure reflections of the laws of supply and demand.

Detailed explanation-2: -A market economy is a type of economic system where supply and demand regulate the economy, rather than government intervention. A true free market economy is an economy in which all resources are owned by individuals.

Detailed explanation-3: -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-4: -Free-market capitalism A capitalist free-market economy is an economic system where prices for goods and services are set freely by the forces of supply and demand and are expected by its supporters to reach their point of equilibrium without intervention by government policy.