A ________ economy is one in which resources are primarily owned and controlled by the private sector.
A) free market
B) planned
C) command
D) democratic

Question

Quizplus · Accepted Answer

In a free market economy, resources are predominantly owned and controlled by private individuals and businesses, rather than the government or public sector. This means that decisions about production, distribution, and prices are largely determined by supply and demand, competition, and market forces, rather than by central planning or state intervention. While there may be some regulations, taxes, and social safety nets, the overall focus is on individual freedom, innovation, and efficiency, rather than collective welfare or equality. Free market economies may vary in terms of their degree of openness, size, diversity, and stability, but they all share the fundamental principle of allowing private property rights and voluntary exchange to shape economic outcomes.

A ________ Economy Is One in Which Resources Are Primarily