GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Controlled market economy
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Free market economy
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Both (1) and (2)
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Neither (1) Nor (2)
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Detailed explanation-1: -capitalism, also called free market economy or free enterprise economy, economic system, dominant in the Western world since the breakup of feudalism, in which most means of production are privately owned and production is guided and income distributed largely through the operation of markets.
Detailed explanation-2: -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.
Detailed explanation-3: -The free market economy definition is also known as the truest form of capitalism, as profit is what drives all production, supply, and demand which forces businesses to be as efficient as possible.