The private ownership of property and the use of the market system to direct and coordinate economic activity is most characteristic of:
A)a command economy.
B)a mixed economy.
C)a market economy.
D)a traditional economy.

Question

The private ownership of property and the use of the market system to direct and coordinate economic activity is most characteristic of:
A)​a command economy.
B)​a mixed economy.
C)​a market economy.
D)​a traditional economy.

Quizplus · Accepted Answer

The private ownership of property and the use of the market system to direct and coordinate economic activity is the defining feature of a market economy. In a command economy, the government owns all property and makes all economic decisions centrally. In a mixed economy, both private and public ownership of property exist, and the government plays a role in regulating economic activity. In a traditional economy, economic activity is based on customs and traditions rather than markets and private property ownership.

The Private Ownership of Property and the Use of the Market