Question

A market system is characterized by the private ownership of resources and the use of prices to coordinate economic activity tru eor false

Answer 1

True

The market system presented in the question relates to a system of capitalism. In capitalism private ownership of resources is used to control, motivate and coordinate economic activity.

Contrast this with a system of socialism or communism, where the state, which represents the collective people, who control the ownership of resources and then use it control and coordinate economic activity. 

This contrast between private and public control of the resources is an essential component and critical idea in understanding the difference between free market systems that demand private enterprises be efficient and effective in the production and control of the resource, socialized systems which can limp along for years because of the public's support for their continuance.