Which of the following is most consistent with a market economy?
A) Shortages.
B) Central planners.
C) Government directives.
D) Laissez faire.

Question

Quizplus · Accepted Answer

Laissez faire is a term often used to describe a market economy where the government does not intervene in the economic system, apart from ensuring competition and protecting property rights. This means that prices, production, and distribution are mostly determined by market forces, such as supply and demand, rather than by government directives or central planners. Shortages (A) may occur in a market economy when demand exceeds supply, but they are not inherent to the system. Government directives (C) and central planners (B) are typically associated with command economies, where the government has more control over economic activities.

Which of the Following Is Most Consistent with a Market