Question

Price-mechanism is an important feature of _________.
(i) Market economy
(ii) Regulated economy
(iii) Mixed economy
(iv) Capitalist economy

• A. i and ii only
• B. iii and iv only
• C. i and iii only
• D. i and iv only

Answer 1

The correct option is D i and iv only

Price-mechanism is an important feature of the capitalist economy, also called the market economy. In this, the prices are determined by the free interaction of the forces of demand and supply. It is an automatic self-regulating mechanism which runs with the motive of profit.