Economics 0455 · IGCSE · Market economic system

Market economic system — practice question

What is one essential characteristic of a market economy?

  • ACentral planners determine what, how and for whom to produce.
  • BIt aims for equality in the distribution of goods and services.
  • CThe market price reflects both the private and external costs of production.
  • DThe price mechanism sends signals to consumers and producers to allocate resources.

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