In a market economy, individuals are rewarded based on their production of goods or services that are in demand and for which others are willing to pay. This means that people who are able to produce items that others want or need will be rewarded more highly than those who cannot. It is not based on family size, government goals, or hours worked.

Solved

In a Market Economy

Question 29

Multiple Choice

In a market economy

A) people are rewarded according to their family size.
B) people are rewarded according to how well they achieve the goals set by government.
C) people are rewarded according to how many hours they work.
D) people are rewarded according to their ability to produce things for which other people are willing to pay.

Correct Answer: