In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as:

Related MCQs

• Consider the following statements: 1. In a Capitalist economy there is private ownership of means of production 2. In a communist nation, the means of production are owned by the State 3. In a free-market economy there is minimum role of the Government Which of the above 3 statement is/are true?
• What does the term free-market denote in terms of economy?
• What will promote savings?
• Old age pension is “National Old Age Pension Schemes”, “Interest payments”, “Subsidies”, “Unemployment allowances”, “Welfare benefits to weaker sections, etc.” By incurring such expenditure, the government does not get anything in return, but it adds to the welfare of the people, especially belong to the weaker sections of the society. Such expenditure basically results in redistribution of money incomes within the society.
• When value of money falls, they benefit more:
• The tax levied by the union government on income of individuals is known as
• What does the term Gross investment mean while denoting a nation's economy?
• What do you mean by a mixed economy?
• Which sector contributes the most to India's economy in terms of GDP?
• Which sector contributes the most to India's economy?