All of the following statements describe a market economy except
A) government prescribes the market prices for goods and services.
B) prices provide important signals to buyers and sellers.
C) the allocation of resources is determined by their prices.
D) the actions of buyers and sellers establish a product's price.

Question

Quizplus · Accepted Answer

In a market economy, government intervention in prescribing market prices is limited, if not non-existent. Prices are determined by the forces of supply and demand, and the government's role is typically limited to enforcing contracts and ensuring competition.

All of the Following Statements Describe a Market Economy Except