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marta [7]
4 years ago
12

Why is capitalism called a free - market economy?

Social Studies
1 answer:
anyanavicka [17]4 years ago
5 0
In capitalism the market decides (is free to decide, hence the usage of the word "free" ) over what will be produced and how much, and it is not commanded by any entity, such as the government in case of command economy (think: socialism).

So in capitalism, the market is free to function without intervention, and because of this, it is called a "free-market" economy.
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