Final answer:
A free market economy is characterized by private ownership, competition, and market forces.
Step-by-step explanation:
A free market economy is characterized by three main aspects:
- Private Ownership: In a free market economy, individuals and businesses have the right to own and control property and resources. This means that individuals are free to start their own businesses and make decisions about what to produce, how much to produce, and at what price to sell.
- Competition: In a free market economy, there is competition among buyers and sellers. This competition helps to drive innovation, improve quality, and lower prices for consumers.
- Market Forces: The forces of supply and demand play a central role in a free market economy. Prices are determined by the interaction of buyers and sellers in the marketplace, and resources are allocated based on consumer preferences and the profitability of different products and services.
Learn more about Characteristics of a free market economy