In a _____ economy, individuals and firms own most resources, and in a _____ economy, the government controls most resources.

Question

Quizplus · Accepted Answer

A market economy is characterized by private property ownership and free markets, where individuals and businesses make their own economic decisions. In contrast, a planned economy is characterized by government control of resources, with central planning directing economic activity. A socialist economy is a type of planned economy in which the government owns and operates key industries while allowing for some private property ownership. However, the question only mentions the extent of resource ownership/control, making options B and D incorrect.

In a _____ Economy, Individuals and Firms Own Most Resources