Question

Which one of the following statements about a market economy is​ TRUE? A. Government incentives prompt producers to make​ high-quality goods. B. The majority of a​ nation's land,​ factories, and other economic resources are privately owned. C. The growth rate of a market economy is less than that of a planned economy. D. Government regulations are a burden on commercial activities. E. All productive activities are owned by the state.

Answer 1

Answer:

B. The majority of a nation's land, factories, and other economic resources are privately owned.

Explanation:

A market economy represents an economic system where the interactions of private individuals and businesses determine the pricing of goods and services as well as most economic decisions.

To this end a vast amount of the economic resources of the nation are owned by private businesses as well as individuals. These economic resources include land, buildings among others.

The market economy is based on the theory that when government intervenes in the economic activities of an organization it lead to economic inefficiencies.