2.03 Quiz: Free Market Economy

Which statement is FALSE regarding the self-regulation of the market?

Producers will increase their prices if they have too many products on hand.

Which answer is an example of a market?

a Bulletin board with advertisements

What is a disadvantage of a free market economy?

income inequality

What did Adam Smith say that the free market economy is regulated by?

self-interest and competition

Why do markets exist?

to provide a place for people to trade goods and services