| Front | Back |
|---|---|
| of the following countries, the one that best exhibits the characteristics of a market economy is: | Canada. |
| the term laissez faire suggests that: | government should not interfere with the operation of the economy. |
| economic scarcity: | applies to all economies. |
Also, what is a fundamental characteristic of the market system?
One of the most important characteristics of a market economy, also called a free enterprise economy, is the role of a limited government. Most economic decisions are made by buyers and sellers, not the government. A competitive market economy promotes the efficient use of its resources.
Beside above, what is a distinguishing feature of a command system? A command economy does not allow market forces like supply and demand to determine what, how much, and at what price they should produce goods and services. Instead, a central government plans, organizes, and controls all economic activities, discouraging market competition.
Regarding this, what are two major virtues of the market system?
Two major virtues of the market system are that it: allocates resources efficiently and allows economic freedom. The invisible hand promotes society’s interests because: individuals pursuing their self-interest will try to produce goods and services that people in society want and are willing to purchase.
What did the invisible hand refer to quizlet?
In economics, the Invisible hand is the term economists use to describe the self- regulating nature of the marketplace. For Smith, the Invisible hand was created by the conjunction of the forces of self-interest, competition, and supply and demand, which he noted as being capable of allocating resources in society.