Question

A market economy relies on _________________ to allocate resources.

1) government
2) good planning
3) market forces
4) small businesses

Answer 1

A market economy relies on market forces to allocate resources.

Step-by-step explanation:

A market economy relies on market forces to allocate resources. Market forces refer to the interaction of supply and demand in the marketplace. In a market economy, prices are determined by the forces of supply and demand, and resources are allocated based on these prices. For example, if the demand for a certain product increases, prices will rise, leading to increased production and allocation of more resources to meet the demand.