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    Question

    What economic system is characterized by a free-market

    economy?
    A Socialism Correct Answer Incorrect Answer
    B Capitalism Correct Answer Incorrect Answer
    C Feudalism Correct Answer Incorrect Answer
    D Communism Correct Answer Incorrect Answer

    Solution

    A free-market economy is a fundamental feature of capitalism, where resources are allocated based on market forces, and individuals and businesses operate with minimal government intervention. In contrast, socialism and communism emphasize government control or collective ownership of the means of production, while feudalism is a pre-capitalist system based on lord-vassal relationships and manual labor.

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