Free Market and assumption

Question 1

The Free Market offer 3 things

Answer 1

Self- regulating free market
Liberalism - freedom
Individual choice

Question 2

3 solutions: … to produce, … to produce, Who gets …

Answer 2

what, How, what

Question 3

Efficient allocation of resources Interaction between … and …. ensures the best outcome

Answer 3

Buyers and sellers

Question 4

Markets always adjust to the ….

Answer 4

Equilibrium

Question 5

Producers use resources …

Answer 5

Efficiently

Question 6

Means no … or … - as market will adjust

Answer 6

shortage or oversupply

Question 7

Producers will only produce what is …

Answer 7

valued by society

Question 8

3 ways efficient production is ensured:
Use the best …
They use the … resources
They get maximum … out of resources

Answer 8

techniques
minimum
productivity

Question 9

The assumptions you need to make the market work efficiently are ….

Answer 9

untenable

Question 10

No. of Conditions for the market to adjust quickly

Answer 10

5

Question 11

Producers and consumers always act …

Answer 11

rationally

Question 12

All economic actors are perfectly …

Answer 12

informed

Question 13

All … can easily be switched from one use to another

Answer 13

Resources

Question 14

Producers are unable to control their … or …

Answer 14

market and price

Question 15

No. of assumptions the free market makes …

Answer 15

6

Question 16

…. action, self interest, profit …

Answer 16

rational and maximisation

Question 17

Perfect …: every economic actor knows … at all times about the ..

Answer 17

Knowledge + everything + Market

Question 18

Perfect ….. of resources (L…., L…., C)

Answer 18

Mobility land labour capital

Question 19

Perfect …. : firms have no … over price - the …. determines the price

Answer 19

Competition, influence

market

Question 20

Authors of the theory never thought factors ….

Answer 20

Achievable