In a free- market economy the government

a. does not regulate the market

b. does determine what goes on in the market place

a. does not regulate the market

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In a free-market economy, the government does not determine what goes on in the marketplace. The correct answer is a. The government's role in a free-market economy is limited to protecting property rights, enforcing contracts, ensuring fair competition, and providing certain public goods and services. The government does not regulate the market by setting prices, controlling production, or determining what goods and services can be bought and sold. Instead, decisions regarding production, consumption, and investment are primarily made by individuals and private businesses based on supply and demand in the marketplace.