The role of the government of a nation is only limited to controlling the Law and Order of a country and to ensure that a 'fair price' is charged by the sellers. That is to say, the government, having no role in administering the price of a commodity, has to see that the prices taken by the sellers is true and commensurate with the price determined by the forces of demand and supply.
The basic feature of the free market economy is that only people with sufficient control over resources, and wealth, in particular have the privilege to purchase goods and services, often priced very highly in a free economy. Prices, which are the only allocating and distributing factor in a free market economy, place the poor in an unenviable situation who are gradually thrown out of the system without any access to wealth and the basic needs of subsistence.
Thus it deems absolutely imperative that a country like India and a few Latin American countries like Brazil, Peru and Nicaragua having a large number of poor have a public distribution system in place with subsidized prices being fixed by the government to protect the poor. Free market economy is considered to the most efficient or optimum device to allocate a country's resources, with wealth or income being the only yardstick.Free market economy is often associated with a Capitalistic Economy with means of production being privately owned.
A circular flow of influences
consumers and producers influence each other in a circular fashion
The free choices made by consumers and producers influence each other. ~Apex
market
consumers and producers
A circular flow of influences
consumers and producers influence each other in a circular fashion
The free choices made by consumers and producers influence each other. ~Apex
market
Consumers and Producers.
The free-market system has a circular flow of influences.
consumers and producers
Free-Market system
They make the economic decisions.
C. They make the economic decisions
consumersThe free choices made by consumers and producers influence each other.
consumersThe free choices made by consumers and producers influence each other.