Question

select the correct answer from each drop-down menu.

in a market economy, goods are distributed based on choose an answer. there is less influence by choose an answer than in a choose an answer. for example, in a market economy, a renter can lease an apartment simply because the renter can choose an answer.

Explanation:

Analyze market distribution

In a market economy, resources and goods are allocated through decentralized decisions of firms and households. The primary mechanism for this distribution is price, which is determined by supply and demand. Therefore, goods are distributed based on price.

Compare system influences

Market economies rely on price signals with minimal central planning. This means there is less influence by the government compared to a command economy, where a central authority makes all production and distribution decisions. This relates to the student's prior knowledge of Economic Systems.

Apply to the rental example

In a market economy, transactions occur voluntarily based on financial capability. A renter can lease an apartment simply because they have the ability to pay the rent, rather than needing government permission or relying on traditional allocation.

Answer:

In a market economy, goods are distributed based on <blank>price</blank>. There is less influence by <blank>the government</blank> than in a <blank>command economy</blank>. For example, in a market economy, a renter can lease an apartment simply because the renter can <blank>pay for it</blank>.