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Which of the following "umbrella-term" economic systems would you find an economy where prices are determined solely by the country's individual citizens and businesses and government keeps a laissez-faire attitude?

A. Traditional
B. Market
C. Command
D. Mixed

1 Answer

6 votes

Final answer:

A market economy is the system where individual citizens and businesses determine prices with minimal government intervention.

Step-by-step explanation:

The economic system in which prices are determined solely by the country's individual citizens and businesses, and where the government maintains a laissez-faire attitude is known as a market economy. In a market economy, the primary decisions about what to produce, how to produce, and for whom to produce are made by individuals and private firms. This is in contrast to a command economy, where such decisions are made by government officials, or a mixed economy, which incorporates elements of both market and command economies.

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