FIRST CONTACTS 28000 BCE 1821 CE
THE COLUMBIAN EXCHANGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Individuals choose what they want to buy.
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Low demand for a product increases the price.
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Either A or B
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None of the above
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Detailed explanation-1: -In a market economy, there is little private property or competition. In a market economy, individual firms, households, and consumers have economic freedom and can make most of their own decisions.
Detailed explanation-2: -In a market economy, like capitalism, factors of production are owned by private individuals and businesses. It is up to these independent entities to decide what is produced and how it is produced. With no government involvement, individual consumers decide which goods or services they would like to purchase.
Detailed explanation-3: -A free market is one where voluntary exchange and the laws of supply and demand provide the sole basis for the economic system, without government intervention.
Detailed explanation-4: -Advantages of a Market Economy Consumers have a wide variety of products to choose from. Innovation is encouraged because of the profit motive and self-interest of the market participants. Competition ensures better quality products, hard-working labor, and hence overall high efficiency.