Question

A capitalist economy is by and large _________.

• A. a closed economy
• B. a free market economy
• C. a centrally controlled economy
• D. an economy in which the government neither collects any taxes nor incurs any expenditure

Answer 1

The correct option is B a free market economy

Capitalist economy is known as a free market economy since the prices of the factor of production and commodities are determined by the free play of demand and supply in the market without any government intervention in the price determining process.