Question

True or false In a pure market economy, the government controls most actions.

Answer 1

False i hope its right

Answer 2

Answer:

It is false that in a pure market economy the government controls most actions.

Explanation:

In the theory of economic systems, the market economy refers to an economic system in which the right to decide and act is distributed by the legal institute of private ownership of the means of production. Planning and coordination of economic processes are decentralized. The individual usage plans of households and companies (use of income and profits) and the development plans (profit generation and income generation) are coordinated by market prices. This coordination includes the allocation and distribution of individual goods through market prices on the one hand and the allocation and distribution of public goods through political decisions on the other hand. The individual plans of economic agents are coordinated with each other via market prices and placed in a macroeconomic accounting context by linking the markets.

In economic theory, the market economy is seen as a self-regulating and self-optimizing system, assuming that economic subjects have the freedom to make decisions and act. Therefore, the idealized market economy is also perceived as a free market economy. However, real markets sometimes deviate significantly from this idealized model concept.