Which statement is a characteristic of a market economy?

Question

Businesses are privately owned without government involvement.

Resources are controlled by the government.

Businesses are controlled by the government.

The economy is based on tradition and customs.

Answer 1

The correct statement that is a characteristic of a market economy is:

Businesses are privately owned without government involvement.

In a market economy, the decisions regarding production, investment, and distribution are guided by the interactions of citizens and businesses in the marketplace.