A typical feature of a market economy is that
ECONOMICS
JAMB 2009
A typical feature of a market economy is that
- A. all producers make profit
- B. full employment exists
- C. consumer sovereignty exists
- D. there is equality of economic agents
Correct Answer: C. consumer sovereignty exists
Explanation
A market economy is characterized by private ownership, freedom of choice, self-interest, buying and selling platforms, competition, and limited government intervention. There is consumer sovereignty in a market economy in a way that consumers decide what should be produced, while the forces of demand determine at what prices goods and services should be exchanged.
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