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Practice mode Introduction To Economics

What characterises a free market?

Correct answer A. Prices adjust to reconcile scarcity and desires

Explanation

In a free market, resources are allocated by the price mechanism rather than by the state. Prices rise or fall until what people want to buy matches what is available.

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Question 02 Introduction To Economics

Why are data important in economics?

Correct answer B. They suggest relationships for explanation and allow testing of hypotheses

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