Question

1. in a market economy, what primarily determines the price of goods and services?

supply and demand
central planning
government mandates
international trade agreements

1. which of the following best describes the role of government in a command economy?

the government makes all major economic decisions, including what to produce, how much to produce, and the prices of goods.
the government enforces regulations but allows the market to set prices.
the government plays no role in the economy.
the government only intervenes during economic crises.

1. which economist is most associated with the concept of the \invisible hand\ guiding free markets?

adam smith
karl marx
milton friedman
john maynard keynes

Explanation:

1. In a market - economy, supply and demand interact to set prices. Central planning is for command economies, government mandates can influence but not primarily determine, and international trade agreements affect prices indirectly.
2. In a command economy, the government has full control over major economic decisions like production quantity, type, and prices. Other options misstate the government's role.
3. Adam Smith introduced the concept of the "invisible hand" to describe how self - interest in free markets leads to economic order. The other economists are associated with different economic theories.

Answer:

1. Supply and demand
2. The government makes all major economic decisions, including what to produce, how much to produce, and the prices of goods.
3. Adam Smith