In a free market system, the what, how and for whom questions in economics are determined by Market forces of demand and supply together. Hence, option B is correct.
Taxes, quality controls, quotas, tariffs, and other centralized government economic interventions either don't exist or are very minimal in a free market, an unrestrained system of economic exchange.
In a free market, no one is forced to participate, and transactions are started voluntarily. According to economic theory, the price mechanism, competition, and forces of supply and demand are the best ways for free markets to distribute goods and capital.
Thus, option B is correct.
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