Which of the follow is generally true of a competitive free market economy? (1 point)

Question

Responses

it can run itself without the intervention of government.
it can run itself without the intervention of government.

it depends on government intervention to run effectively.
it depends on government intervention to run effectively.

it requires a planning commission to set prices.

Answer 1

In a competitive free market economy, the statement that is generally true is:

it can run itself without the intervention of government.

A competitive free market economy relies on voluntary exchanges and the forces of supply and demand to allocate resources and determine prices, often functioning without direct government control.