The market system is characterized by:
A) extensive government constraints on individual behavior.
B) private ownership of the means of production.
C) government control of all production decisions.
D) government rationing of all goods and services.

Question

Quizplus · Accepted Answer

The market system is characterized by private ownership of the means of production, where individuals and firms own and control resources and make production decisions based on market forces of supply and demand. It is a decentralized system that operates without extensive government constraints on individual behavior or government control of all production decisions. Government may play a role in regulating certain aspects of the market system, but it is not the primary decision-maker or allocator of resources in a free market economy. Government rationing of goods and services is typically associated with command economies or wartime situations, rather than with a market system.

The Market System Is Characterized By