Question

They have to adjust to a new set of incentives. They must learn how to make decisions on their own, to work hard and do a good job, to take initiative, to interpret prices, and to generally fend for themselves in

A) Command economy
B) Market economy
C) Mixed economy
D) Socialist economy

Answer 1

In a market economy, individuals and private firms make decisions on their own, work hard, take initiative, and interpret prices. Businesses in a market economy decide how goods and services are produced.

Step-by-step explanation:

In a market economy, individuals and private firms make decisions on their own, work hard, take initiative, interpret prices, and fend for themselves. In a market economy, businesses decide how goods and services are produced, hire labor as they see fit, and pay accordingly. Market economies are based on private enterprise, where individuals or groups own and operate the means of production.