The key elements of a market economy include all of the following except
A)freely determined prices.
B)property rights.
C)freedom to trade at home.
D)freedom to trade abroad.
E)strong government intervention.

Question

Quizplus · Accepted Answer

Strong government intervention is not a key element of a market economy. The market economy relies on the market forces of supply and demand to regulate prices and allocate resources. Government intervention may disrupt these mechanisms and distort the market outcomes. However, some degree of government involvement is usually needed to protect property rights, enforce contracts, and regulate monopolies.

The Key Elements of a Market Economy Include All of the Following