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Which of the following factors does not influence the inner workings of a free market? A)taxes B)politics C)inflation D)trade agreements

Respuesta :

A free market is an economy system where the prices for services and goods are set freely between the vendors and consumers. There is no interventions by the government, price-setting monopoly or other authority. From the choices given, the best answer would be politics. Politics will not influence a free market.

Answer:

Taxes

Explanation:

A free-market economy, also known as laissez-faire capitalism, is an economic system in which the demand and supply are in total control of the market, and the government does not intervene at all. (taxes, tariffs, subsidies, and regulations are not part of a total free-market economy because those are considered government's interventions). It is important to know that there are no totally free-market economies in the world.

Politics influence the inner workings of a free market, because it depends of the politic system of the country, (extremely right systems would advocate for free-market while left systems would advocate for command economies); inflation does influence the inner workings because it has to do with the demand of products and services and the ability to supply them.