Help please thanks?

Question

define the following values of free market economy.

1)personal freedom

2)laissez faire

3)profit motive

4)consumer sovereignty

5)private ownership

Answer 1

personal freedom... the producers are free to produce whichever goods and services they choose, they are not regulated by the government and are not stopped either.

laissez faire... as it mean do as please so the producers are given the full authority of choosing the goods and the combination of factors of production they wish to use.

profit motive... the basic motivator is profit; they continue production of those that give the earn the most profits, this leads to efficiency.

consumer sovereignty... as the producers are profit motivated then they would produce those goods that the conumers most want, this way the wants of consumers are given the highest consideration.

private ownership... priavte individuals own and control all businesse, there is no public sector therefore no government ownership.