Which of the following characteristics best describes a market economy that would be ideal for Tech Innovators' expansion? A. The government controls all major industries and sets... Which of the following characteristics best describes a market economy that would be ideal for Tech Innovators' expansion? A. The government controls all major industries and sets prices for goods and services. B. Prices and production levels are determined by supply and demand, with little government involvement. C. Traditional practices and cultural customs guide economic activities and trade. D. Both government and private businesses share control over the economy and manage the market.
Understand the Problem
The question is asking to identify the best characteristic of a market economy that aligns with Tech Innovators' needs for minimal government interference and flexibility for businesses to operate based on supply and demand.
Answer
Prices and production levels are determined by supply and demand, with little government involvement.
Prices and production levels are determined by supply and demand, with little government involvement.
Answer for screen readers
Prices and production levels are determined by supply and demand, with little government involvement.
More Information
A market economy is characterized by minimal government intervention, where the forces of supply and demand dictate prices and production. This environment allows for innovation and competition, ideal for tech companies seeking to expand.
Tips
A common mistake is to confuse market economies with mixed or command economies, where government involvement is significant in economic decisions.
Sources
- What Is a Market Economy and How Does It Work? - Investopedia - investopedia.com
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