Which of the following is true of a pure market economy?

Question

BlackTom AI · Accepted Answer

Question restatement: The prompt asks which statement is true about a pure market economy, and provides four options to evaluate.
Option 1: 'All factors of production are owned by the government.' This describes a command or planned economy, not a pure market economy. In a pure market system, most resources are owned privately and allocated through markets, not by the state.
Option 2: 'All factors of production are privately owned.' This aligns with the core characteristic of a pure (free) market economy: private property and private ownership of resources, with decisions driven by supply and demand in voluntary exchanges. This statement is the one that accurately reflects a pure market setup.
Option 3: 'It has elements of both a market economy and a command economy.' That describes a mixed economy, where government and market forces both influence production and prices. A pure market economy deliberately minimizes government involvement, so this option is incorrect for a pure form.
Option 4: 'Its policies are based on religious decree.' This is not a defining feature of market economies; policy basis in a market system is typically economic efficiency and voluntary exchange, not religious law. Therefore this option is incorrect.
Summary of reasoning: The false options (1, 3, and 4) mischaracterize the core nature of a pure market economy by introducing government ownership, mixed-economy elements, or non-economic policy bases. The true statement directly reflects the private ownership of factors of production fundamental to a pure market economy, which is captured in Option 2.

MGS3025W02 Quiz 1- Requires Respondus LockDown Browser

Which of the following is true of a pure market economy?

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MGS*3025*W02 Quiz 1- Requires Respondus LockDown Browser

Which of the following is true of a pure market economy?

查看解析

登录即可查看完整答案

类似问题

An active, but limited, government is characteristic of which type of economic system in modern advanced industrial economies? BlackTom题目解析

In a Blank ______ system, people act in their own self-interest. BlackTom题目解析

Which of the following is characterized by the private ownership of resources and the use of markets to coordinate and direct economic activity? BlackTom题目解析

Which of the following is true of a market system? BlackTom题目解析

In a ______ economy, consumers decode what is to be produced and by whom through their dollar “votes.”

A market economy is characterized by strict government regulation of prices and production.

Which situation indicates a market economy?

Which situation indicates a market economy?

更多留学生实用工具

希望你的学习变得更简单

MGS3025W02 Quiz 1- Requires Respondus LockDown Browser