Q.

One of the features of a free market economy is -

A. active state intervention
B. public ownership of factors of production
C. rationing and price control
D. consumer's sovereignty
Answer» D. consumer's sovereignty
Explanation: Consumer Sovereignty is one of the features of a free market economy. It refers to the assertion consumer preferences determine the production of goods and services. In a free market system, market performance is in fact responsive to the specific wants of the consumers within the system.
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