Which of the following is NOT true of a market economy?
A) In its pure form, it is also known as a laissez-faire economy.
B) Decisions are regulated by a central agency.
C) The interaction between buyers and sellers answers the basic economic questions of what gets produced, how it gets produced, and who gets it.
D) It relies on millions of individual economic decisions to determine economic outcomes.

Question

Quizplus · Accepted Answer

A market economy relies on the interaction between buyers and sellers to make economic decisions, without regulation from a central agency. This is the opposite of a command economy, where a central agency makes economic decisions. Therefore, choice B is not true of a market economy.

Which of the Following Is NOT True of a Market