Question

Which of the following describes a market economy?
A. The government and the people own everything together.
B. The government owns and runs all the businesses.
C. Individuals own businesses, and they compete with one another for profits.
D. Individuals own some businesses, and the government also owns some businesses.

Answer 1

Basically C.  In a mrket economy, the individuals decide on their businesses and basically control the economic ranges within the main range.

Answer 2

Answer:

C. Individuals own businesses, and they compete with one another for profits.

Explanation:

Market Economy doesn't need the government to exist. In fact, government can do nothing but to disturb a market. Markets are based on trade and the personal value that things have to each people. In that way, you change something that you have for something that you think to have greater value than what you gave. In that way, both sides are happy with the trade as long as they're made out of free will.