195k views
3 votes
what are the 3 most important factors/features of a free market? why are they important to understanding capitalism and the american economy

1 Answer

4 votes

*the 3 most important factors/features of a free market:-

Private ownership of resources.

Thriving financial markets.

Freedom to participate.

They both are involved in determining the price and production of goods and services. On one hand, capitalism is focused on the creation of wealth and ownership of capital and factors of production, whereas a free market system is focused on the exchange of wealth, or goods and services.

User Roozbubu
by
4.8k points