Question

A market economy is a system in which supply and demand regulate the economy, rather than the government. Some characteristics are:  private ownership of property and resources  economic decisions made by buyers and sellers  profit motive  free enterprise Why is competition and some government regulation important to the successful growth of a market economy? Give two explanations for the importance of competition in a market economy and two reasons why it is important to have minimal government regulation in a market economy.

Thanks!!!!

Answer 1

The following are constructed response questions that have been on Final Exams or MSLs given by the state of NC:

Sample #1: Read the excerpts to respond to the item below.

There should be no bitterness or hate where the sole thought is the welfare of the United States of America . . . we will continue to seek to improve working conditions for the workers of America—to reduce hours over-long, to increase wages that spell starvation, to end the labor of children, to wipe out sweatshops. Of course we will continue every effort to end monopoly in business, to support collective bargaining, to stop unfair competition, to abolish dishonorable trade practices.

- Franklin D. Roosevelt, 1936

The Great Society rests on abundance and liberty for all. It demands an end to poverty and racial injustice, to which we are totally committed in our time. But that is just the beginning.

- Lyndon B. Johnson, 1964

Evaluate the degree to which the principle to “promote the general welfare,” as mentioned in the Preamble to the U.S. Constitution, has been used to maintain constitutional democracy in the United States. Use one detail from the excerpts above to support your position.

Sample #2

The Research Triangle Park (RTP) is one of the largest research parks in the United States. It was created in 1959 by state and local governments and is located near several universities in the Raleigh, Durham, and Chapel Hill area. The park is home to over 170 businesses, ranging from biotechnology to finance. It serves as a model for research innovations, education, and economic development.