A free market exists

A. when the government places few restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed.

B. when the government places absolutely no restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed.

C. only in fiction. There are no markets or economies which even come close to approaching the status of a free market.

D. when the government places significant restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed.

Question

Business

Jax Cummings

6 September, 01:47

A free market exists

A. when the government places few restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed.

B. when the government places absolutely no restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed.

C. only in fiction. There are no markets or economies which even come close to approaching the status of a free market.

D. when the government places significant restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed.

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Answers (1)

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John Cunningham · Answer 1

Answer: Option A

Explanation: In a free market structure, the majority of resources in the economy are owned and controlled by the private owners. The prices of commodities produced in such a market structure are determined by the market forces of demand and supply.

The rules and restrictions imposed by the govt. in such a market structure exists but at a very small extent. The govt. in such a market structure controls only those industries which are important for national security and development.