One of the features of a free market economy is that?
Answer Details
One of the features of a free market economy is that resources are directed by the price mechanism. In a free market economy, prices of goods and services are determined by the forces of supply and demand, with no interference from the government. Consumers and producers interact in the marketplace to determine the prices of goods and services, and the allocation of resources is guided by these prices. As prices rise, producers are incentivized to produce more of a particular good, and as prices fall, consumers are incentivized to purchase more of that good. Therefore, the correct option is "resources are directed by the price mechanism".