Question

Which statement best describes a pure market economy? It’s c on edge

Answer 1

Answer:

The decisions made by producers and consumers drive all economic choices.

Explanation:

A pure market economy is a marketing economy that depends entirely on the market for all its allocation decisions. In this type of economy, the government has no say whatever in any decision making.

Considering that the market alone determines the decision to make any allocation decisions, the second and fourth options are eliminated. Moreover, the statement that producer intervention in any economic choices is strictly forbidden is also not true, thus eliminating the first option. This leaves us with just the third option, which is that producers and consumers make the decisions that drive the economic choices, which is true.

Thus, the correct answer is the third option.