In which of the following options all the economic activities are organised with the help of market forces of demand and supply?

Market economy

The Correct Answer is option 2 : Market economy

Market or free economy is the economy where all the economic activities are controlled by the market forces of demand and supply. All, the economic decisions are made with the motive of maximising the profit. In centrally planned economy all the economic activities are controlled by the central authority, whereas, in mixed economy all the economic decisions are driven by the motive of both profit maximisation and social welfare.