PRC-3 · Chapter 1 · Question 19 of 61
A nation's economy is characterized by private ownership of property, profit motives, and resource allocation driven by supply and demand. What economic system is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Capitalist (Market) economy
Explanation
A capitalist or free-market economy is driven by private ownership, self-interest (profit motive), and market forces without central government planning.
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