Question

What is a market economy? a market that relies on the trading of goods and services without the use of money an economic system in which the government or another central administration regulates supply and prices a system in which people earn wages and buy the goods ands they choose an economic system that is a combination of both command and market economies

Answer 1

Market economy refers to an economic system wherein

decisions about investments, product-making, and distribution of goods and

services are centered on the interaction of supply and demand, wherein supply

and demand plays important roles in determining a product/service’s price or

value.

Answer 2

The correct answer is C) a system in which people earn wages and buy the goods as they choose.

A market economy is a system in which people earn wages and buy the goods as they choose.

A market economy can be defined as an economic system. In this system, the economic decisions as well as the prices of services and goods, are defined by the many interactions that have the businesses, the markets and the people in any nation.

One of the characteristics of a market economy is that the government has little or non-intervention in the regulation of prices. It is the market, -supply and demand- that establishes the economic conditions.

The market forces in modern societies drive the activities in their economies. The only case when the government intervenes is when to generate stability in the markets.