Which type of economy does this describe: Individuals own businesses and freely choose what to buy and sell in free markets with little government interference.

Question 3 options:

Traditional Economy

Capitalist Economy

Socialist Economy

Communist Economy

In capitalist Economy, individuals own businesses and freely choose what to buy and sell in free markets with little government interference.

Explanation:

The term capitalist economy is relevant to the term Capitalism. When an individual or a business owns capital goods for their own profit, it is called capitalism.

In a capitalist economy, the goods and services are produced solely on the basis of the demand in the market as well its supply. The individuals/businesses who have their product/services in the market have the sole ownership and have little to no restraint from the government. The decision of investments and area of distribution of goods/services is their own. They decide the prices as well.