ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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profit is the motivation for most businesses
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supply and demand dictate price and production
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competition between businesses is discouraged
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None of the above
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Detailed explanation-1: -Answer and Explanation: The correct answer is A. Markets are physical locations where trading occurs. Markets do not need a central physical location.
Detailed explanation-2: -A market economy is a system that is made up of a number of market systems. Market economy characteristics are presented as supply and demand, private ownership, exchange spaces, regulators, freedom of choice, and competition.
Detailed explanation-3: -A market economy is a type of economic system where supply and demand regulate the economy, rather than government intervention. A true free market economy is an economy in which all resources are owned by individuals.
Detailed explanation-4: -There are six major types of markets-perfect competition, monopoly, monopolistic competition, oligopoly, oligopsony, and monopsony.