Question

Select all the correct answers.

Answer 1

Minimal government intervention

Answer 2

Minimal government intervention and property rights. Unlike other type of economies, government involvement in regulating transactions in a market economy is minimal; the market is regulated by supply and demand. Here, the decisions regarding investment, production, and distribution of market goods are regulated by market price and demand. Market economy economy is quite competitive because of very little regulation; here, every producer is doing whatever is necessary to lower costs and increase profit. Properties and resources can be owned by individuals, associations and even the governments.