ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A commercial banking services
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B free government health services
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C private educational services
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D profitable retail services
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Detailed explanation-1: -Pillars of capitalism In free markets, also called laissez-faire economies, markets operate with little or no regulation.
Detailed explanation-2: -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-3: -Answer and Explanation: Clearly, the statement that does not belong to a market economy is c) Prices act as a “visible hand” to direct economic activities in allocating scarce resources.
Detailed explanation-4: -A free market is an economic system in which private business owners get complete control over production, allocation, consumption, pricing, labor supply, and the purchase and sale of products and services without any governmental interference.