Which of the following refers to an economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced?

Question

Quizplus · Accepted Answer

A market economy is one in which the quantity of goods and services produced is determined by the interaction of supply and demand in the marketplace. This is in contrast to a command economy, which is centrally controlled by a government, or a barter economy, in which goods and services are exchanged directly without the use of money. A regulated economy is one in which the government imposes rules and regulations on economic activity, while a centrally planned economy is one in which the government controls all aspects of economic production and distribution.

Which of the Following Refers to an Economic System in Which