ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a system where all economic decisions are taken by private individuals
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a system where economic decisions are taken by private individuals with only limited government intervention
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Either A or B
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None of the above
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Detailed explanation-1: -A true free market economy is an economy in which all resources are owned by individuals. The decisions about the allocation of those resources are made by individuals without government intervention. There are no completely “free-enterprise” or market economies.
Detailed explanation-2: -A capitalist economy is a type of free market economy; the profit motive drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market share to competitors.
Detailed explanation-3: -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. The essential feature of capitalism is the motive to make a profit.
Detailed explanation-4: -Expert-verified answer A mixed economy is considered a free economy. It is considered a free economy.
Detailed explanation-5: -What Does Free Market Capitalism Mean? Any economy is capitalist as long as private individuals control the factors of production. A purely capitalist economy is also a free market economy, meaning the law of supply and demand, rather than a central government, regulates production, labor, and the marketplace.