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Which of the following describes a market economy?

OA. The government and the people own everything together.
B. The government owns and runs all the businesses.
OC. Individuals own some businesses, and the government also owns
some businesses.
D. Individuals own businesses, and they compete with one another
for profits.

User Irv
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2 Answers

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Answer:

Governments highly control some economies. In the most extreme planned, or command economies, the government controls all of the means of production and the distribution of wealth, dictating the prices of goods and services and the wages workers receive. In a purely free market economy, on the other hand, the law of supply and demand, rather than a central planner, regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services.A capitalist economy is a type of free market economy; the profit motive drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market share to competitors. In capitalism, businesses are owned by private individuals, and these business owners (i.e., the capitalists) hire workers in return for wages or salary. In such an economy, the government serves no role in regulating or supporting markets or firms.In reality, no country is purely capitalist and no country has a purely free market -- there is some sort of combination of markets and regulation, with different countries falling at different places on the spectrum. Below, we list some of those countries that rank highest toward the free market end.

Step-by-step explanation:

User Choover
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Answer:

it, and the government plays a limited role in the economy.

D. Individuals own businesses, and they compete with one another for profit, and the government plays a limited role in the economy.

User Stefan Drissen
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