In what economy are the decisions of firms and households guided by profit and self-interest?

Question

Quizplus · Accepted Answer

In a market economy, the decisions of firms and households are guided by profit and self-interest. In a command economy, decisions are made by the government, while in a traditional economy, decisions are based on customs and traditions. While profit and self-interest may still play a role in these other economies, they are not the primary guiding force. Therefore, the correct answer is C, a market economy.

In What Economy Are the Decisions of Firms and Households