Which of the following is not a principle of a free-market economy?
A) Supply and demand
B) Competition
C) Resource allocation
D) Free choice

Question

Quizplus · Accepted Answer

Resource allocation is not exclusively a principle of a free-market economy; it is a fundamental aspect of all economic systems, including planned economies where the government determines the allocation of resources, not the market forces of supply and demand. In contrast, supply and demand, competition, and free choice are core principles that define a free-market economy, where prices and the distribution of goods and services are determined by the interactions of individuals and businesses making decisions in their own self-interest.

Which of the Following Is Not a Principle of a Free-Market