Question

In the lost city of Atlantis, all the factors of production are privately owned and the government has no hand in coordinating prices or economic activity. Atlantis is experiencing:

Question 1 options:

Free markets

Perfect competition

Pure socialism

Monopolistic competition

Pure capitalism

Answer 1

Step-by-step explanation:

Based on the description provided, the economic system in the lost city of Atlantis is characterized by "Free markets" and "Pure capitalism." In a system with free markets, the factors of production are privately owned, and economic activity is primarily driven by market forces of supply and demand. The absence of government intervention or coordination of prices indicates a lack of central planning or socialism. Additionally, the mention of privately owned factors of production aligns with the principles of capitalism, where private individuals or entities own and control the means of production.