What is a characteristic of a market-based economy?(2 points)

Question

Responses

Limited role of the private sector
Limited role of the private sector

Central planning by the government
Central planning by the government

Preference for collective ownership
Preference for collective ownership

Decentralized decision-making by consumers and businesses

Answer 1

Decentralized decision-making by consumers and businesses is a characteristic of a market-based economy. This means that individuals and businesses are free to make their own decisions regarding what to produce, how to produce it, and for whom to produce it.