Question

Which of the following is a characteristic of a free-market economy

Answer 1

Answer:   a) Individual choice

Explanation:  Free-market economy is the type of economic system in which everyone has the right to the extent that he wants to invest in an area he wants under certain rules regulated by law. This implies the right to private property, capital and resources that are not owned by the community. Also there are various regulations and contracts that regulate and ensure fair games on the free market. The government's influence is insignificant or not at all. This type of economy carries with it the risk because it is necessary to predict where and how to invest, which is not always safe and can lead to bankruptcy or to extraordinary profit.