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Question

Which type of economy gives rise to the most efficient allocation of resources and capital in the standard macroeconomics framework?

A
Free market economy
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B
Command market economy
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C
Controlled market economy
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D
Regulated market economy
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Solution

The correct option is B Free market economy
In free market economy, the most efficient allocation and use of resources is attainable as the decision making in this economy is based on market mechanism.

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