Question

Which of the following results from the fact that a free-market system is based on the free choices of consumers and producers?

A.
Consumers and producers are often the same people.

B.
The government can only command, but not plan, the economy.

C.
Goals such as security and efficiency cannot be met.

D.
The free-market system has a circular flow of influences.

Answer 1

The free market model has a circular flow of influences.

Step-by-step explanation:

Answer 2

The correct answer is letter D.

Free Market or Free Market Capitalism is the economic system where trade between individuals and institutions can take place without state interference. It is a decentralized and independent economy, marked by social cooperation: a relationship of voluntary exchange. There is also the division of labor and private ownership of all means of production.

In the Free Market, trade is only possible because each party expects to gain from it. Trade happens because both parties benefit, both can gain, otherwise they would not engage in the exchange.