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Which type of economy does this describe: Individuals own businesses and freely choose what to buy and sell in free markets with little government interference.

Question 3 options:

Traditional Economy


Capitalist Economy


Socialist Economy


Communist Economy

1 Answer

3 votes

In capitalist Economy , individuals own businesses and freely choose what to buy and sell in free markets with little government interference.

Explanation:

The term capitalist economy is relevant to the term Capitalism. When an individual or a business owns capital goods for their own profit, it is called capitalism.

In a capitalist economy, the goods and services are produced solely on the basis of the demand in the market as well its supply. The individuals/businesses who have their product/services in the market have the sole ownership and have little to no restraint from the government. The decision of investments and area of distribution of goods/services is their own. They decide the prices as well.

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