In a free market system
A) there is no government involvement in the economy.
B) resources are allocated on a first-come first-served basis.
C) buyers and sellers make all of the economic decisions.
D) government mostly allows markets to operate with little intervention or regulation.

Question

Quizplus · Accepted Answer

In a free market system, the government mostly allows markets to operate with little intervention or regulation. While there may be some government involvement to enforce property rights and contracts, the allocation of resources and economic decisions are primarily made by buyers and sellers in the market. Therefore, option D is the best choice. Options A and B are incorrect because some government involvement is necessary for a functioning economy, and resources are allocated based on supply and demand rather than first-come first-served. Option C is partially correct, but it is not entirely true that buyers and sellers make ALL economic decisions as government regulation and intervention do exist in some capacity.

In a Free Market System