It has been argued that the economic freedom associated with a ______ economy creates greater incentives for innovation than either a planned or mixed economy.
A)production
B)market
C)commercial
D)manufacturing

Question

Quizplus · Accepted Answer

A market economy, also known as a free market economy, allows individuals to make their own economic decisions and compete in the marketplace. This competition encourages innovation as businesses must innovate and improve their products or services to stay ahead of competitors and attract customers. In a planned or mixed economy, the government or other central authority makes economic decisions, which can lead to less innovation due to lack of competition and incentives for individuals to innovate.

It Has Been Argued That the Economic Freedom Associated with a ______