Question

Write the main characteristics of a market economy.

Hint:

A market economy is characterized by free markets, private ownership, and limited government interference in economic activities.

Answer 1

\[\begin{array}{rl} \bullet & \text{Decentralized decision-making: Economic decisions are made by individuals and firms based on supply and demand.} \\ \bullet & \text{Private property: Resources and production means are privately owned.} \\ \bullet & \text{Competition: Firms compete to offer better products and services.} \\ \bullet & \text{Profit motive: Businesses operate to maximize profits.} \\ \bullet & \text{Minimal government intervention: The government plays a limited role, focusing on regulations and public goods.} \\ \end{array}\]