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

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

Answer 2

​the answer is: C. The decisions made by producers and consumers drive all economic choices.

One distinct characteristic of a pure market economy is that there is no government involvement in the market.

This mean that all economic choices and activiites in a country are fully controlled by the private sectors.

While this type of economy tend to be resulted in higher profit when people are successful (because no government exist to take people's taxes) , This type of economy also possess the highest risk of the private sectors conducting bad behaviours and getting away with it.