Before we look at how the three questions are answered, we must quickly look at some of the characteristics of a free market economy.
CharacteristicsThey make the economic decisions.
C. They make the economic decisions
C. They make the economic decisions
C. They make the economic decisions
A circular flow model
They make the economic decisions.
C. They make the economic decisions
C. They make the economic decisions
C. They make the economic decisions
C. They make the economic decisions
C. They make the economic decisions
A circular flow model
C. They make the economic decisions
C. They make the economic decisions
In a free market system, there are producers that make the product and consumers that purchase the product. The government just needs to make sure that the participants are following the laws and regulations and to provide proper infrastructure such as good roads and railways.
C. They make the economic decisions
Minimize costs and maximize revenues.