In which type of economy can each producer allocate his resources based on the demand?
A
Market economy
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Command economy
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Mixed economy
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Regulated economy
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A Market economy In market/capitalist economy, the producer is free to produce anything and thus, can allocate his resources based on the demand.