What is a free market?
A. A free market is one without property rights.
B. A free market is one where the government does not control the production of goods and services.
C. A free market is one where the government restricts how a factor of production can be employed.
D. A free market is one where the government restricts how a good or service can be produced. E. A free market is one with perfect equality.

Question

04-09-2019
Business

contestada

What is a free market?
A. A free market is one without property rights.
B. A free market is one where the government does not control the production of goods and services.
C. A free market is one where the government restricts how a factor of production can be employed.
D. A free market is one where the government restricts how a good or service can be produced. E. A free market is one with perfect equality.

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Answer: Option (B) is correct.

Explanation:

A free market is a market in which prices of goods and services are determined by the buyers and by the open market. The market forces of demand and supply are free from all types of government intervention. Hence, the producers are free to operate as they want to. Under free market, there is no barrier on the exchange of goods and services as compared to the restricted market in which government intervenes through various means.