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General Knowledge · Q72

Practice

Competitive Exams · General Knowledge · question 72

Q72

Free market is

A.
a condition in the international market where nations do not impose customs duty or other taxes on import of goods
B.
market where the price of a commodity is determined by free play of the forces of supply and demand
Answer
C.
ports that are exempted from payment of customs duty on articles of commerce, primarily to encourage tourism
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
Free market is market where the price of a commodity is determined by free play of the forces of supply and demand. The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment.