Question

comprehension

1. what is the driving force behind market economies?

a. communal ownership
b. supply and demand
c. government regulations
d. traditional customs

comprehension

1. which economic system is characterized by government control over production and distribution?

a. market economy
b. command economy
c. traditional economy
d. mixed economy

comprehension

1. what is the primary goal of businesses operating within a market economy?

a. to ensure equal distribution of wealth
b. to follow government regulations
c. to maintain traditional customs
d. to make a profit

short answer questions
answer the following short answer questions about the reading.

Explanation:

Question 8

In a market economy, the forces of supply (quantity of goods/services available) and demand (quantity consumers want) determine prices, production levels, and resource allocation. Communal ownership is more related to socialist/communal systems, government regulations are more for command/mixed economies, and traditional customs drive traditional economies. So the driving force is supply and demand.

A command economy (also known as a planned economy) has the government making decisions about what to produce, how to produce, and for whom to produce. Market economies rely on supply - demand, traditional economies on customs, and mixed economies have a combination of government and market forces. So the economic system with government control over production and distribution is a command economy.

In a market economy, businesses operate to earn profits. Equal wealth distribution is a goal of socialist systems, following regulations is a compliance aspect not the primary goal, and maintaining traditional customs is for traditional economies. So the primary goal of businesses in a market economy is to make a profit.

Answer:

B. Supply and demand

Question 9