Question

7. The profit motive is important to a market economy because it A. allows the government to collect extra in taxes. B. encourages consumers to buy more products. C. encourages people to open businesses and invent new products. D. allows workers to get paid.

Answer 1

The reason why the profit motive is important in a market economy is that it C. encourages people to open businesses and invent new products.

Why is there a profit motive in a market economy?

The profit motive ensures that there is an incentive to make new product and open more businesses to service the needs of the society.

When people know that they will be able to make profit from new enterprise, they are more likely to think up ways to engage in business to make profit.

Find out more on the profit motive at brainly.com/question/933169.

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