Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
53 views
in GK by (240k points)
closed by

Which of the following is the best example of free market?

A. A market where goods can be transported for free

B. Government owned markets

C. Markets where goods are heavily discounted

D. Market where price is determined by demand and supply.


1. B
2. D
3. A
4. C

1 Answer

0 votes
by (238k points)
selected by
 
Best answer
Correct Answer - Option 2 : D

The correct answer is Market where the price is determined by demand and supply.

  • The free market is an economic system based on supply and demand with little or no government control.  
    • Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions.
    • Based on its political and legal rules, a country's free-market economy may range between very large or entirely black market where the price is determined by demand and supply is called the free market.
  • Hence, option 2 is correct.

  • Economists identify four types of market structures:
    • (1) perfect competition, (2) pure monopoly, (3) monopolistic competition, and (4) oligopoly
      • A perfectly competitive market is a hypothetical market where competition is at its greatest possible level.
      • A pure monopoly is a market structure where one company is the single source for a product and there are no close substitutes for the product available.
      • Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another. 
      • Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...