Question

In a free market economy, decision relating to 'for whom to produce' enhances the gap between the rich and the poor.

• A. True
• B. False

Answer 1

The correct option is A True

In a free economy, the producers will produce goods for those who can afford to pay high price. Poorer sections of the society are often, thus, ignored. As a result, the gap between the rich and the poor enhances.