Question

In a pure market economy: Question 8 options: A) production is determined by the interaction of supply and demand. B) the prices at which goods are sold is determined by the government. C) collectivist goals are given priority over individual goals. D) all productive activities are owned by the state.

Answer 1

Answer:

A) production is determined by the interaction of supply and demand.

Explanation:

A  pure market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions

Characteristics of a  pure market economy

• Private ownership of means of production
• freedom of choice. Producers are free to produce what they desire
• competition among producers
• no government intervention.