Question

Which statement describes one trait of a free market economy?

A. Businesses and jobs are often passed from one generation to the
next.
B. The government sets the price of every good produced in the
country.
C. Competition between businesses selling the same product is
encouraged.
D. The government has total control over the country's economy.

Answer 1

Answer: C. Competition between businesses selling the same product is encouraged.

Explanation: In a free market economy the government has very little interference. These economies are self governing and are all about supply and demand.