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29 July, 18:42

Which of the following describes a free market economy

Government controls it.

Business determine what products to create and sell.

Businesses must give many of their profits to the government.

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  1. 29 July, 19:25
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    The correct answer is Business determine what products to create and sell.

    Explanation:

    In a free market economy, the prices of each product or service are established by the same business, depending on the demand for them.

    In this type of economy, the government does not intervene, that is, everyone can sell a product at the price they want. If there is a high demand for a product or service, the price of that product may increase without anyone regulating this.

    This would create a balance between supply and demand, so that both the consumer and the business that manufactures the products are responsible for setting the prices.

    Given this information we can say that the correct answer is: Business determine what products to create and sell.
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