Question

Assertion (A): Unregulated markets are absolutely free of all the market regulations.

Reason (R): The rule and regulation of the appropriate agencies are either minimal or does not exist at all.

Choose the correct option.

• A. Both A and R are true and R is the correct explanation of A.
• B. Both A and R are true but R is not the correct explanation of A.
• C. A is true but R is false.
• D. A is false but R is true

Answer 1

The correct option is A Both A and R are true and R is the correct explanation of A.

Unregulated markets are those which are free of all the market regulations. This means that the appropriate agencies' rule and regulation are either minimal or does not exist at all. That makes these markets a free market. Unregulated markets are driven by market forces such as supply and demand. Traders frame the rules for the conduct of the business and run the market. Most of the time, these markets suffer from many ills, such as unstandardised prices and quality.