ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Democratic capitalism, also referred to as market democracy, is a political and economic system. It integrates resource allocation by marginal productivity (synonymous with free-market capitalism), with policies of resource allocation by social entitlement.

Detailed explanation-2: -Economic democracy is a socioeconomic philosophy that proposes to shift decision-making power from corporate managers and corporate shareholders to a larger group of public stakeholders that includes workers, customers, suppliers, neighbours and the broader public.

Detailed explanation-3: -Countries with Market Economies According to the Fraser Institute’s Economic Freedom of the World Rankings, the five countries with the most economic freedom in 2021 were Taiwan, Hong Kong, Singapore, New Zealand, and Switzerland.

Detailed explanation-4: -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-5: -Unlike other types of economies, a market economy increases the efficiency of businesses. Governments, in their limited roles, promote increased efficiency and free and increased competition.