Question

guided reading activity 2 - 2
for use with textbook pages 42 - 46
characteristics of the american economy
recalling the facts
directions: use the information in your textbook to answer the questions.

1. what are the six major characteristics of a pure market economy?

a. b. c.
d. e. f.

Explanation:

In a pure market economy, the main characteristics include private property rights (allowing individuals and businesses to own resources), freedom of enterprise (the ability to start and operate a business), freedom of choice (consumers can choose what to buy and producers can choose what to sell), competition (multiple firms vying for customers), the price - profit system (prices signal information and profits drive production), and limited government involvement (government has a minimal role in economic decision - making).

Answer:

a. Private property rights
b. Freedom of enterprise
c. Freedom of choice
d. Competition
e. Price - profit system
f. Limited government involvement