ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Martha owns her own company. She invests in all the capital goods needed to make her product and sells her goods with the motivation of making huge profits. So long as she does not produce anything illegal, Martha freely chooses what to produce and consumers freely choose whether or not to buy her product. It sounds like Martha’s company operates in a(n):
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command economy.
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market economy.
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traditional economy.
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economy based on equity.
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Explanation:
Detailed explanation-1: -profit motive is the main motivation for producers.
Detailed explanation-2: -Inflation, unemployment, and poor real GDP performance are examples of macroeconomic issues.
Detailed explanation-3: -Which is a human resource that Ms. Johnson could use for her art gallery? Light fixtures to help display the artwork.
Detailed explanation-4: -How might the purchase decisions of consumers impact a market economy? By buying some products, but not others, consumers might determine what is produced. When consumers buy products, the price of the product might decrease in response. If firms increase the supply of a product, consumers might purchase more.
There is 1 question to complete.