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- Characteristics of a free market economy include12:
- Private ownership of resources by individuals or companies, not by the government12
- Thriving financial markets that facilitate the exchange of money and assets12
- Freedom to participate in economic activities, such as production, consumption, and trade12
- Demand and supply that determine the prices and quantities of goods and services12
- Consumer sovereignty that reflects the preferences and choices of buyers2
- Economic freedom that allows individuals to pursue their self-interest2
- Right to private property that protects the ownership and use of resources2
- Profit motive that incentivizes producers to offer goods and services2
- Competition that encourages innovation and efficiency2
- Voluntary exchange that benefits both buyers and sellers2
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A free market economy is characterized by the following:
corporatefinanceinstitute.com/resources/economic…Characteristics of a free market economy
- Limited role of government A free market as an economic system is based on demand and supply with little or no intervention from the government. ...
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