Question

A market economy is also called a ______________________ economy? Question 4 options: mixed planned traditional free market\

Answer 1

A Market Economy is also called a
‘Free Market’

Answer 2

Answer:

A market economy is also called a free market economy.

Explanation:

The market economy is known as free market economy or true free enterprise if there is a limited role of the external government in the same and the economy is mainly determined and regulated by the supplies and demands.

The allocation of resources is not made by the government but by the individuals who decide what and how much to produce, what to charge for their products and how much their employees are to be paid.

It is characterized by self-regulation and self-adjustment. The producers can sell their products in any market of their choice and the buyers are more than free to purchase whatever meets their demands, wishes, and convenience. This system is known to make the best and most efficient use of its resources.