A) Each aspect of the economy is under government control.
B) The government and private companies collaborate to make economic decisions.
C) Businesses and private citizens make most economic decisions with little help from the government.
D) All prices and production levels are established by the government.
The correct answer to the question of which statement best represents a pure market economy is that economic decisions are decided by private individuals and firms with little government involvement.
The Explanation
In a pure market economy, private individuals and firms make all economic choices with little or no government intervention, and prices are determined by supply and demand.
The market itself controls the distribution of goods and services, investment, and production in this kind of economy. The government's participation is low or nonexistent, and competition is promoted as a vital component in generating innovation and efficiency.
Which Statement Best Describes a Mixed Market Economy?
A. It is strictly prohibited for consumers to influence economic decisions.B. The majority of economic decisions are made by the government.C. All economic decisions are influenced by the choices made by producers and consumers.D. While the government makes certain economic decisions, producers and
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