7
QuizMultiple Choice

Economic Systems and Daily Life

Question 7 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Which statement best describes a pure market economy?

Answer
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.

Explanation

In a pure market economy, consumers and producers make the economic decisions through their choices about what to buy and what to produce. So the statement that their decisions drive all economic choices is the best description; government-directed or shared decision-making describes other kinds of economies.

AI-written and checked against the verified answer.

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