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What is a free market economy driven by?

What's welfare


What results the fact that a free market is based on the free choices of consumers and producers?

The free-market system has a circular flow of influences.


How are free market circular flow models different from mixed economy circular flow models?

Free market circular flow models emphasize minimal government intervention, where households and firms interact freely in the marketplace, determining prices and resource allocation solely through supply and demand. In contrast, mixed economy circular flow models incorporate government involvement, illustrating how policy decisions can influence economic activities, redistribute income, and provide public goods. This government role can stabilize the economy, correct market failures, and address social equity concerns, distinguishing it from the purely market-driven approach of free market models.


What is provided by the consumers in the circular flow of the free market?

labor and investment


How do antitrust laws effect the circular flow of the free market?

they speed up the flow of capital and wages


What are the two payments in the free market circular flow model?

Resource markets and product markets are the two payments int he free market circular flow model. Both of these markets are for businesses and households.


What is the role for consumers and producers in a free market system?

A circular flow model


What is provided by producers in the circular flow of the free market system?

Individual goods


What does the circular flow shows?

the interactions between households and businesses in the free market


What results from the fact that free market system is based on the free choices of consumers and producers?

The free-market system has a circular flow of influence.


How do anti trust laws affect the circular flow of the free market system?

They speed up the flow of capital and wages


How do antitrust laws affect the circular flow of the free market?

They speed up the flow of capital and wages