Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Which of the following is a sign of a "Free economy"?

Options:

The price in the economy is partially regulated

The price in the economy is regulated

The price in the economy is determined with the help of market forces of demand and supply

None of the above

Correct Answer:

The price in the economy is determined with the help of market forces of demand and supply

Explanation:

In, free economy often called as market economy, the market forces of demand and supply determine the prevailing prices in the economy.