ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government owns or controls the means of production
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The economy is dependent on subsistence farming
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Consumer demand determines what is to be produced
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Government agencies set wages and prices
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Detailed explanation-1: -The main characteristic of a market economy is that individuals own most of the land, labor, and capital. In other economic structures, the government or rulers own the resources.
Detailed explanation-2: -The United Kingdom has an advanced open market economy in which the prices of goods and services are determined in a free price system.
Detailed explanation-3: -Private property, freedom, self-interest, competition, minimum government intervention are the characteristics of a market economy.
Detailed explanation-4: -In a market economy, resources are owned by private individuals. The goods and services that are produced are not determined by the government. Rather, production is determined by businesses responding to the wants and desires of consumers.