Question

The profit motive is important to a market economy because it question 7 options:

a) encourages consumers to buy more products.
b) allows the government to collect extra in taxes.
c) encourages people to open businesses and invent new products.
d) allows workers to get paid.

Answer 1

The profit motive is important in a market economy because it encourages people to open businesses and invent new products. Therefore, the correct option is C.

Step-by-step explanation:

In a market economy, the profit motive is important because it encourages people to open businesses and invent new products (option c). The profit motive refers to the belief that individuals have the right to risk their money in a business venture or as an investment, with the expectation of earning a return on their investment. This incentive drives entrepreneurs to innovate, take risks, and create new products or services that meet consumer demand.