ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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can choose what to buy and sell
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must buy their fruits and vegetables at a farmers’ market
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have to do all of their shopping on Amazon.com
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do not get to choose what jobs they have when they grow up
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Detailed explanation-1: -Sellers are free to sell in markets of their choice. Consumers are free to buy any goods and services they choose. Workers are free to work wherever they choose.
Detailed explanation-2: -In a free market economy, business owners enjoy the freedom to come up with new ideas based on the consumers’ needs. They can create new products and offer new services at any time they want to. As such, entrepreneurs rarely rely on government agencies to notify them of consumers’ needs.
Detailed explanation-3: -A market is free if people can buy and sell whatever they want without any interference from a government, and if prices are set by supply and demand. Supply is how much of a product (both goods like Pringles and services like open-heart surgery) is being sold.
Detailed explanation-4: -What Is a Simple Definition of a Free Market Economy? 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: -Rankings of economic freedom vary depending on who is doing the ranking, but some economies generally considered free-market include: Hong Kong, Singapore, New Zealand, Australia, Switzerland, the United Kingdom, Canada, and Ireland.