ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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traditional economy
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command economy
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free market economy
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mixed economy
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Detailed explanation-1: -A market economy has freedom of choice and free enterprise. Private entrepreneurs are free to get and use resources and use them to produce goods and services.
Detailed explanation-2: -The two fundamental aspects of market economies are private ownership of the means of production and voluntary exchanges between economic actors.
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.
Detailed explanation-4: -In a capitalist economy, the consumer has freedom of choice. That is why he is regarded as a sovereign, king or queen. This is what is meant by consumer’s sovereignty. The consumer is free to buy any commodity and in whatever quantities his likes.
Detailed explanation-5: -The free market is an economic system based on supply and demand with little or no government control.