Question

n a free-market system, the allocation of benefits and costs is determined primarily by a. Interaction between a private party and another private party b. Interaction between a government entity and another government entity c. Upholding the "mixed economy"at all costs d. Interaction between a private party and government

Answer 1

Answer:

The answer to this question is A. Interaction between a private party and another private party

Explanation:

A free market economy, otherwise known as a capitalist economy is one that is controlled by private individuals with little or no government control.

A free or capitalist system may be defined as one in which all or most means of production are owned and controlled by private individuals and in which the economic activity of the government is at minimum.

In a capitalist economic system, private individuals play greater role than the government in taking decision about on what to produce, how to produce and the distribution of what is produced.  

Hence, the allocation of benefits and costs is determined in a free market economy by  A. Interaction between a private party and another private party