Scenario: Learning the American Way
Sergei Chernovl is a Russian exchange student. To learn more about how a market economy functions, Sergei is writing a research paper comparing business in Russia with business in the United States.
-Sergei knows that the key to a market economy is leaving nearly all economy-related decisions to the interplay of ________.
A) government and labor
B) labor and management
C) government and management
D) supply and demand

Question

Quizplus · Accepted Answer

In a market economy, decisions are driven by the forces of supply and demand. This means that businesses make decisions based on consumer demand and the resources available to them, rather than government or labor interventions. Therefore, the correct answer is D) supply and demand.