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Which of the Following Is True of a Market Economy

Question 38

Multiple Choice

Which of the following is true of a market economy?


A) The government determines what and how much is produced and consumed.
B) Firms and households rarely interact in the marketplace.
C) Open competition between self-interested sellers advertising to self-interested buyers adversely affects product availability.
D) The role of information is negligible with regard to buying decisions.
E) People and firms pursue their own goals.

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