Multiple choice

Which among the following is not a trait of free market?

  1. Government control is minimal

  2. Prices are decided by market forces

  3. Always works in equilibrium

  4. Shortages and surpluses are rare.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A free market does not guarantee equilibrium; it is subject to fluctuations, cycles, and imbalances. The other options are generally considered characteristics of free-market systems.