An economic system in which individuals and businesses make decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.
A) product
B) producer's
C) market
D) planned
E) command

Question

Quizplus · Accepted Answer

In a market economy, individuals and businesses are free to make their own decisions about production and consumption based on supply and demand, without any intervention from a central authority or government. The price signals sent by the market help to allocate resources efficiently and incentivize producers to supply products that are in high demand. This is in contrast to a planned or command economy, where the government or central authority determines what is produced and consumed based on a predetermined plan or set of rules. Therefore, the best choice is C) market.

An Economic System in Which Individuals and Businesses Make Decisions