What Are The Main Features Of The Free Market Economy?


3 Answers

Anonymous Profile
Anonymous answered
1.little or no government intervention
2. Private sector answers questions of what, how, for whom  to produce
3.freedom of movement(entry and exit)
4.freedom of choice for producers and consumers
5.prices are usually determined by market forces (price mechanism: Demand and supply)


p.s. Hope this was helpful ^-^
Katie Harry Profile
Katie Harry answered
In a free market economy it is only the supply and demand of resources that determines their allocation.
The individuals make most of the decisions related to economic activities rather than the government. Individuals can freely make decisions related to employment, accumulated capital, expenditures and the consumption of resources. The government’s only role is to provide public goods and act as a regulatory body. Public good include Education and Law and order. Another role of the government is regulating the monopolies.

It is believed that this economic system is more efficient as it provides the most incentives to the people. However it is more of a theoretical concept because every country in the world places some restrictions on the exchange and ownership of goods and does not leave everything to individuals.

Anonymous Profile
Anonymous answered
Well definetly, they will be some feautures of a free market economy such as:
1.They are run by the Private sector businesses
2.Price are determined by the forces of demand and supply
3.There is freedom in making profit.

Ope Teflon.x

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