Question

In Country D, business owners make most economic decisions. As long as they abide by fair trade policies, they can decide what to produce, how to produce, and for whom to produce without government intervention. These decisions are made by business owners based on what happens in the market. For example, a computer manufacturer recently developed a new video gaming system, but decided to wait until closer to the holidays to release the system to the public because it believed anticipation among consumers would allow the company to charge a higher price for the system. What is their economy?

Answer 1

Answer: Market Economy

Explanation:

The Market Economy is one where business owners have significant power over Economic decisions. They get to decide what to produce, how to produce, and for whom to produce without government intervention.

Government only intervenes to ensure that no fair trade practices are being broken.

This economic system gives more opportunities for wealth to be accrued and allows people to express their independence and personal choice by going into businesses and jobs that they actually want.