Question:
Which of the following is a fundamental feature of the free market economy?
(1) Strict government control of production
(2) More imports than exports
(3) Public ownership of resources
(4) Private property
(5) Prices and wages set by the government
Correct Answer:
(4)
Answer Explanation:
A free-market capitalist economy relies on the private ownership of factors of production (private property rights). Decisions are made by individuals and firms through the price mechanism, not by government planning.
Topic: Economic Systems Year: 2021
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