Which of the following is a result of a market economy?
A)environmental protection
B)an equal income distribution
C)agreement on equity
D)voluntary exchange

Question

Quizplus · Accepted Answer

A market economy is based on voluntary exchange where people can freely buy and sell goods and services. This means that transactions are made because both parties agree that it will benefit them. This leads to increased competition, innovation and efficiency, which are all benefits of a market economy. In contrast, environmental protection and income distribution are typically managed by the government or other organizations, and agreement on equity is a social issue that is not necessarily related to the economy.

Which of the Following Is a Result of a Market