Final answer:
Capitalism is the driving force of a market economy, with regulations set by the government to ensure its fair and efficient functioning. The correct answer is option b. capitalism.
Step-by-step explanation:
The driving force of a market economy is capitalism. In a capitalist system, individuals and businesses own the resources and operate for a profit. The government does play a role by establishing regulations that ensure an efficient and fair marketplace. These regulations serve as the "rules of the game," helping to maintain order, protect property rights, enforce contracts, and prevent fraud.
While Congress, for example, may pass laws related to economic activities such as banking, and government agencies may regulate environmental and safety standards, it is the market forces and capitalist principles that predominantly drive the economy by influencing the decisions on what to produce, how to produce, and for whom to produce.
In essence, regulations aim to create an even playing field for participants and protect consumers and society at large. They are not the primary driver of the market economy; instead, they shape the environment within which the economy operates. So, while laws and regulations are essential to the function of the market economy, they are not the primary driver—capitalism is.