GENERAL KNOWLEDGE

Detailed explanation-1: -Market economies work using the forces of supply and demand to determine the appropriate prices and quantities for most goods and services in the economy.

Detailed explanation-2: -Free enterprise, or the free market, refers to an economy where the market determines prices, products, and services rather than the government. Businesses and services are free of government control.

Detailed explanation-3: -Labor (the workers) and management (the bosses/owners) together will determine how goods will be produced in a market economy. In a market economy, each production resource is paid based on what is contributed to the production of goods and services.

Detailed explanation-4: -In a market system, how does society decide what goods and services will be produced? Consumers, firms, and the government determine what goods and services will be produced by the choices they make.