Which of the following is true of a market economy?
A) In its pure form, it is also known as a command economy.
B) Decisions are regulated by a central agency.
C) The government answers the basic economic questions of what gets produced, how it gets produced, and who gets it.
D) It relies on millions of individual economic decisions to determine economic outcomes.

Question

Quizplus · Accepted Answer

In a market economy, decisions about what goods and services to produce, how to produce them, and who receives them are made based on the interactions of individuals and businesses in the marketplace. Unlike command economies, where a central authority makes these decisions, a market economy relies on supply and demand principles to allocate resources efficiently.

Which of the Following Is True of a Market Economy