All of the following statements describe a market economy except

A) government prescribes the market prices for goods and services.
B) prices provide important signals to buyers and sellers.
C) the allocation of resources is determined by their prices.
D) the actions of buyers and sellers establish a product's price.

Question

Krutika Chordia · Accepted Answer

Final Answer : A, Explanation :  In a market economy, prices are determined by the actions of buyers and sellers, not prescribed by the government. The other statements are correct descriptions of a market economy.

Definitions

Learning Objectives

Learning Objectives

Related questions