Question

The government does not interfere in the process of decision making under a. market economy
b. centrally planned economy
c. mixed economy
d. all of these
e. others:​

Answer 1

Answer:

A, Market Economy is the correct answer

Answer 2

In the market economy, the government does not interfere in the decision making process.

Explanation:

• Under a market economy, the government does not interfere in the decision making process.
• Prices of commodities are affected by the market forces of demand and by the supply this leads to open competition in the free market economy.
• Therefore, it leads to the most efficient utilization of resources and capital, without the intervention of the government which in turn leads to the maximization of the profits.
• Hence, option A is the answer.