Question

Which statement best describes a pure market economy?

A. Producer intervention in economic choices is strictly forbidden.

B. The government determines economic choices and makes most decisions.

C. The decisions made by producers and consumers drive all economic choices.

D. Producers and consumers make some economic choices while the government makes others.

Answer 1

In a pure market economy, the decisions made by producers and consumers drive all economic choices. There is no government intervention.

Step-by-step explanation:

In a pure market economy, the decisions made by producers and consumers drive all economic choices. There is no government intervention, and the prices of goods and services are determined by the demand and supply in the market. This creates competition among buyers and sellers, with buyers offering higher prices and sellers offering lower prices and higher quality goods and services to outperform their competitors.

Answer 2

The decisions made by producers and consumers drive all economic choices.