9 Questions
Which of the following best defines a market economy?
An economy where resources are allocated by supply and demand
How are prices determined in a market economy?
By the equilibrium of supply and demand
What role does the government typically play in a market economy?
Regulates economic activities to ensure fair competition
In a market economy, who primarily determines the allocation of resources?
Consumers and producers through supply and demand
What is a key characteristic of a market economy in terms of ownership of businesses?
Private individuals or corporations own most businesses
Which factor plays a significant role in determining what goods and services are produced in a market economy?
Consumer demand and preferences
What type of economy relies on the forces of supply and demand to determine the allocation of resources?
Market economy
In a market economy, who primarily determines the allocation of resources?
Forces of supply and demand
What key characteristic of a market economy relates to the limited role of government in economic decision-making?
Limited government intervention
Test your knowledge on market economies with this quiz! Explore the definition of a market economy, the government's usual role, and how prices are determined in such an economy.
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