A) Assure government control over resources
B) Encourage effective resource allocation through supply and demand
C) Restrict consumer choice
D) Reduce innovation and competition
Correct Answer: The goal of the market economy is to encourage the effective distribution of resources by regulating supply and demand.
Explanation
A market economy aims to allocate resources efficiently by allowing supply and demand forces to decide the production, distribution, and pricing of goods and services. The goal of this system is to boost economic growth, wealth, and consumer choice by promoting competition, innovation, and entrepreneurship. In a market economy, people and companies make choices according to their interests, which should ideally result in the best possible utilization of resources and the fulfillment of customer demands.
Update your Number