ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The free market is an economic system based on supply and demand with little or no government control.

Detailed explanation-2: -Pillars of capitalism In free markets, also called laissez-faire economies, markets operate with little or no regulation.

Detailed explanation-3: -Governments can create subsidies, taxing the public and giving the money to an industry, or tariffs, adding taxes to foreign products to lift prices and make domestic products more appealing. Higher taxes, fees, and greater regulations can stymie businesses or entire industries.

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: -The interference of the government is very limited in capitalist economy. There is no central planning authority. In fact, there is little or no government or central authority that takes market decisions. The prices are determined by the free interaction of the forces of demand and supply.