Question

In a free market​ system, ____. A. central planning determines supply B. government forces primarily determine prices C. most new business development is limited by government forces. D. private wealth and property ownership are not permissible E. individuals and companies may compete for their own economic gains

Answer 1

Answer: Option E

Explanation: In a free market system the prices of goods and services produced are determined by the market forces of demand and supply. This are also known as open market.

The intervention of govt. in regulating such markets is very minimal. Thus, the control in such markets stands in hands of private owners. Therefore, the private owners produce with the single aim of profit maximization in such economies.

Hence we can conclude that the right option is E.