asked 53.4k views
2 votes
Which of the following is a characteristic of a free-market economy?

a) individual choice
b)centralized planning
c)government influence in the private sector
d) community ownership of resources

2 Answers

3 votes
The correct answer is a. individual choice.
answered
User Yaniv Aknin
by
7.2k points
6 votes

Answer: a) Individual choice

Explanation: Free-market economy is the type of economic system in which everyone has the right to the extent that he wants to invest in an area he wants under certain rules regulated by law. This implies the right to private property, capital and resources that are not owned by the community. Also there are various regulations and contracts that regulate and ensure fair games on the free market. The government's influence is insignificant or not at all. This type of economy carries with it the risk because it is necessary to predict where and how to invest, which is not always safe and can lead to bankruptcy or to extraordinary profit.

answered
User Paillou
by
8.9k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.