What is a free market?
A. Trade conducted with fewer restrictions and lower customs rates
B. Markets whose existence is due to their high fees and restrictions
C. The open-air markets of Indonesia where CEOs engage in business
D. A marketplace that does not charge a fee for renting a booth
I think it's A
I agree.
Thanks
You’re welcome.
You are correct. A free market is defined as trade conducted with fewer restrictions and lower customs rates. To arrive at this answer, it is helpful to understand the concept of a free market.
A free market refers to an economic system in which prices for goods and services are determined by the open market and are not regulated by the government. In a free market, individuals and businesses are free to buy and sell goods and services without interference or control. This includes the freedom to set prices, produce and sell goods, and make economic decisions based on supply and demand.
In contrast, a command economy, such as the one found in some socialist or communist countries, involves government control and regulation of prices, production, and distribution.
In the given options, option A, "Trade conducted with fewer restrictions and lower customs rates," accurately describes what a free market represents. Option B, "Markets whose existence is due to their high fees and restrictions," is a contradictory statement and does not fit the definition of a free market. Option C, "The open-air markets of Indonesia where CEOs engage in business," refers to a specific location and specific participants, rather than a general economic system. Option D, "A marketplace that does not charge a fee for renting a booth," is unrelated to the concept of a free market.
Therefore, the correct answer is indeed A.