A system in which individuals, rather than the government, make the majority of economic decisions is commonly referred to as a ________.
A)command economy
B)market economy
C)private economy
D)mixed economy

Question

Quizplus · Accepted Answer

When individuals or private firms make most of the economic decisions, it is known as a market economy. In a market economy, prices and production levels are determined by the interactions between buyers and sellers and are not centrally planned by the government. The command economy, on the other hand, is characterized by strong government control over economic activities. A mixed economy is a combination of both market and command economy elements. There is no such term as a private economy.

A System in Which Individuals, Rather Than the Government, Make