Question

A key feature of market economies is that the market economy:
a. have government planners to allocate all economic resources.
b. allocate resources by everyone acting in their own self-interest.
c. are based solely on consumer spending.
d. always elect their government officials

Answer 1

Answer:

The answer is b. allocate resources by everyone acting in their own self-interest.

Explanation:

A market economy is a system where the laws of supply and demand direct the production of goods and services. One of the key characteristics of a free market economy is that all resources are privately owned.