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The economy in which the government allows freedom of action of all economic units is essentially—
- a)a socialist economy
- b)a mixed economy
- c)a capitalistic
- d)none of the these
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The economy in which the government allows freedom of action of all ec...
A free market economy. In a free market economy, prices are determined by supply and demand, and there is little government intervention in the market. Individuals and businesses are free to make their own decisions about what to produce, how much to produce, and at what price to sell their goods and services. The government's role is limited to enforcing property rights, regulating competition, and providing basic public goods and services. This type of economy is often associated with capitalism and is often contrasted with command economies, where the government controls all economic activities.
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The economy in which the government allows freedom of action of all ec...
Capitalism refers to an economic system in which a society's means of production are held by private individuals or organizations,not the government
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