Multiple choice

Which of the following economies is also known as free market economy?

  1. Capitalist economy

  2. Socialist economy

  3. Mixed economy

  4. Communist economy

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A Correct answer
Explanation

Capitalist economy is also known as free market economy because the interference of state is least. Socialist economy is always under direct control of state and means of production are under the state. Mixed economy lies in between the two extremes.