Question

Which situation best represents a market economy?

O A. A father teaches his son a fishing technique passed down for
generations.
O B. A government seizes money from wealthy citizens and gives it to
the poor,
O C. A factory must switch production from cars to boats due to
government orders,
O D. A banker quíts his job to work at another bank that offers a higher
salary,
SUBMIT

Answer 1

The best representation of a market economy is option D, where a banker moves to another bank for higher pay, illustrating individual economic decisions, unlike the other options that show government control.

Step-by-step explanation:

The situation that best represents a market economy is D. A banker quits his job to work at another bank that offers a higher salary. This option illustrates the fundamental principles of a market economy, where individual decisions and economic forces determine the movement of labor and capital. This is contrary to the scenarios depicted in options B and C, where government interventions dictate the redistribution of wealth or the production decisions of firms, aligning more with a command economy. Option A, where a father teaches his son to fish, is not directly related to market transactions but rather to the passing down of cultural or family traditions. In a market economy, supply of goods and services depends on what is demanded, and a person's income is based on their ability to convert resources into something valued by society.