What is called the market in which forces of demand and supply are not in the control of government ?
Correct answer: C. Both of them
- A. Market Economy
- B. Free Market
- C. Both of them
- D. None of them
Explanation
A free market is one in which prices and allocation are mainly determined by demand and supply rather than government controls. Market economy is the broader name for an economic system based on this mechanism, so both descriptions fit.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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