GENERAL KNOWLEDGE

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.

Detailed explanation-2: -In a market economy, the decisions are made by the producers and consumers. The government intervenes minimally in the market and does not make any decisions about what is produced or how it is produced.

Detailed explanation-3: -Free economies exist because a significant portion of resources are owned by individuals or companies in the private sector and not a central government agency. In this way, the owners exercise total control over the means of production, allocation, and exchange of products. They also control the labor supply.

Detailed explanation-4: -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.