GENERAL KNOWLEDGE

Detailed explanation-1: -In free market economy, prices of the commodities are affected by market forces, i.e., demand and supply. Therefore, the market provides freedom of choice to both supplier and consumer.

Detailed explanation-2: -Advantages of Capitalism Consumers enjoy a wider choice of products and services since the system allows firms to compete with other companies in the economy. Businesses are given a greater incentive to work hard since they get to enjoy the profits they generate by determining the means of production.

Detailed explanation-3: -The purest form of capitalism is free market or laissez-faire capitalism. Here, private individuals are unrestrained. They may determine where to invest, what to produce or sell, and at which prices to exchange goods and services. The laissez-faire marketplace operates without checks or controls.

Detailed explanation-4: -Central to the concept of a capitalist economy is the freedom to choose a product from among various competitors’ offerings. Using the principles of competition and the invisible hand of supply and demand, consumers in capitalist economies should have the greatest freedom of choice available.

Detailed explanation-5: -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.