Which of the following does not describe a pure market economy?
A)The choices of buyers and sellers determine the market prices of goods and services.
B)Prices serve as signals to buyers and sellers.
C)Prices and outputs of most goods and services are stable over time.
D)Owners of resources in greater demand by others tend to have higher incomes.

Question

Which of the following does not describe a pure market economy?
A)​The choices of buyers and sellers determine the market prices of goods and services.
B)​Prices serve as signals to buyers and sellers.
C)​Prices and outputs of most goods and services are stable over time.
D)​Owners of resources in greater demand by others tend to have higher incomes.

Quizplus · Accepted Answer

In a pure market economy, prices and outputs of goods and services can fluctuate greatly over time due to changes in supply and demand. Therefore, option C does not describe a pure market economy.

Which of the Following Does Not Describe a Pure Market