Question

Which situation is likely to occur in a market economy?

A.

There are many obstacles to starting businesses.


B.

The government sets production quotas for goods.


C.

The government owns all businesses.


D.

There are few obstacles to starting businesses

Answer 1

The situation most likely to occur in a market economy is D: There are few obstacles to starting businesses.

Step-by-step explanation:

The government generally does not set production quotas or own businesses, and instead focuses on creating a favorable business environment by enforcing contracts, protecting property rights, and regulating certain industries.