Question

Market capitalism is an economic system in which:

A) individuals and firms allocate resources and production resources that are privately owned.
B) the state has broad powers to serve the public interest as it sees fit.
C) market resource allocation is commanded by both private and state ownership.
D) there is no correlation between economic freedom and a nation's economy.
E) market-oriented economies function in an identical manner.

Answer 1

Market capitalism, or a market economy, is characterized by private ownership, decentralized decision-making, and minimal government intervention, where market forces determine economic decisions.

Step-by-step explanation:

Market capitalism is an economic system in which individuals and firms allocate resources and production resources that are privately owned. This system, also known as a market economy or a capitalist economy, is characterized by private property rights and decentralized decision-making. In such an economy, the role of the government is typically limited to enforcing private property rights and regulations. Instead of the government, market forces like supply and demand guide the economic decisions, and the means of production are owned and operated by private individuals or businesses.

In contrast to a market economy, a command economy involves government ownership of resources and centralized decision-making. However, some countries have mixed economies, which incorporate elements of both market and command economies, such as market socialism with limited private ownership and certain government interventions.