Which of these is a feature of a market economy?

Freedom of choice for consumers and producersCorrect answerYour answerProduction decided by a central planCorrect answerYour answerState ownership of all factoriesCorrect answerYour answerPrices fixed by the government for every goodCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

In a market economy, consumers spend as they choose and producers make what they choose, guided by prices.
Central plans, state ownership and fixed prices belong to a centrally planned economy.

Concept: Features of a market economy
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEconomic systems; positive and normative

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Which of these is a feature of a market economy?

Explanation