A market economy depends on market mechanisms to:

Question

Quizplus · Accepted Answer

A market economy relies on market mechanisms such as supply and demand to determine the most efficient way of using resources. The market sets prices for goods and services and businesses allocate resources to produce those goods and services that will earn them the highest profits. This system is believed to be more efficient than government-directed economies, which can lead to shortages, surpluses, and inefficient use of resources. Choices B, C, and D all relate to government interventions, which are not necessarily a part of a pure market economy.

A Market Economy Depends on Market Mechanisms To