Question

Which of the following describes a market economy?

Answer 1

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.

Answer 2

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