Question

The Three Economic Questions Quick Check
2 of 52 of 5 Items
Question
In which economic system are price signals, resulting from supply and demand forces, the only determining factor for the goods and services that the economy produces?(1 point)
Responses

a market economy
a market economy

a command economy
a command economy

a traditional economy
a traditional economy

a mixed economy

Answer 1

a market economy

In a market economy, price signals from supply and demand are the primary (in a pure market, the only) factor determining what goods and services are produced.