ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Traditional economic system
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Command economic system
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Mixed economic system
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Market economic system
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Detailed explanation-1: -A free market is one where voluntary exchange and the laws of supply and demand provide the sole basis for the economic system, without government intervention. A key feature of free markets is the absence of coerced (forced) transactions or conditions on transactions.
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: -free market, an unregulated system of economic exchange, in which taxes, quality controls, quotas, tariffs, and other forms of centralized economic interventions by government either do not exist or are minimal.
Detailed explanation-4: -For example, banks and brokerages in free markets enable individuals and companies to invest and exchange goods and services. In return, these financial institutions make profits by charging interests or fees on transactions.
Detailed explanation-5: -A perfectly competitive market is a special case of a free market. That is, a perfectly competitive market has all the essential characteristics of a free market, but the reverse is not necessarily true.