An economy in which the means of production are owned privately and decisions are driven by markets is a:
Asubsistence economy
Bsocialist economy
Ccapitalist (market) economy
Dbarter economy
Answer & Solution
Correct answer: C. capitalist (market) economy
A capitalist economy has private ownership and market-led decisions.
Keep practising Macroeconomics: Income, Budget & Banking
Browse all Macroeconomics: Income, Budget & Banking questions for AP Intermediate 1st Year, or explore more Economics topics.
Related questions
Micro or macro?An economy that combines features of both market and government decision-making is a:Economics is broadly studied under the two branches of:Spot the odd one outThe economist whose work 'The Wealth of Nations' makes him widely regarded as the father oModern macroeconomics emerged largely from the work of the economist:In a centrally planned economy, the question of what and how much to produce is decided byThe fundamental economic problem that gives rise to all economic activity is: