An economic system that answers the What, How, and For Whom questions using prices determined by the interaction of the forces of supply and demand is a:
A) market economy.
B) command economy.
C) traditional economy.
D) none of these.

Question

Quizplus · Accepted Answer

A market economy operates based on the forces of supply and demand, with prices being determined through the interaction of buyers and sellers in the market. This system answers the basic economic questions of what goods and services to produce, how to produce them, and for whom they are produced based on the decisions made by individuals and businesses in the market.

An Economic System That Answers the What, How, and for Whom