Question

select the correct answer.
which feature is characteristic of a market economy?
a. government provides basic goods.
b. self - interest motivates buyers.
c. people have less economic freedom.
d. people have no property rights.

Explanation:

• Option A: In a market economy, the private sector (not mainly the government) provides most goods and services. So A is incorrect.
• Option B: In a market economy, buyers (consumers) and sellers (producers) are motivated by self - interest (e.g., consumers want to maximize satisfaction, producers want to maximize profit). This is a key feature of a market economy.
• Option C: Market economies are associated with more economic freedom (e.g., freedom to choose what to produce, buy, sell), so C is incorrect.
• Option D: In a market economy, people have property rights (the right to own and control property), so D is incorrect.

Answer:

B. Self - interest motivates buyers.