Which statement is true of a market economy? A. It depends more on self-interest than a command economy does. B. It eliminates the problem of scarcity, unlike a command economy. C. It prioritizes the public good over personal freedom. D. It requires the approval of a regulatory body for innovation. E. It ensures that everyone will accumulate wealth.

Question

Advanced Placement (AP)

Harley Mahoney

15 February, 07:59

Which statement is true of a market economy? A. It depends more on self-interest than a command economy does. B. It eliminates the problem of scarcity, unlike a command economy. C. It prioritizes the public good over personal freedom. D. It requires the approval of a regulatory body for innovation. E. It ensures that everyone will accumulate wealth.

+4

Answers (1)

Know the Answer?

Archie · Answer 1

The correct answer is A. It depends more on self-interest than a command economy does.

Explanation:

In the market economy, economical factors are mainly regulated by the actions of individuals and their interests, because these two factors determine supply and demand. For example, the supply of a specific product is determined by the manufactures of this product and their interest in obtaining profits. This does not occur in a command economy because, in this, the general interests of society prevail over self-interests, and economical factors are regulated by the government.