The liberal market economy emphasizes which of the following?Group of answer choicesHigh taxesStrong governmentSocial welfareFree market
Question
The liberal market economy emphasizes which of the following?
- High taxes
- Strong government
- Social welfare
- Free market
Solution
The liberal market economy typically emphasizes a free market. In this economic model, the mechanisms of supply and demand play a fundamental role in determining prices and allocating resources, with minimal intervention from the government. While some regulation exists, it is generally limited compared to coordinated market economies, which may depend more on government involvement in economic activities and social welfare programs.
In liberal market economies, businesses operate with a significant degree of freedom, fostering competition and innovation. This emphasis on free-market principles often leads to lower taxes and reduced government spending compared to systems that prioritize strong government or extensive social welfare.
Therefore, the correct answer is Free market.
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