A characteristic of the market system is:
A) frequent use of price controls.
B) frequent use of barter.
C) extensive use of capital goods.
D) low interest rates.

Question

Quizplus · Accepted Answer

The extensive use of capital goods is a key characteristic of the market system. These goods, which include tools, machinery, and buildings, are used to produce goods and services efficiently and quickly in order to meet the demands of the market. The market system relies on entrepreneurs to invest in capital goods and make decisions based on profit potential. Price controls and barter are not typically used in a market system, and interest rates are not necessarily low or high, but determined by supply and demand in the financial markets.

A Characteristic of the Market System Is