Which of the Following Best Explains the Difference Between a Market

question 2

Multiple Choice

Which of the following best explains the difference between a market economy and a planned economy?

• A) In a planned economy, consumers have little choice in where they work or what they purchase or pay.
• B) In a market economy, consumers must pay what the market demands.
• C) Capitalism is the root of a planned economy.
• D) Market economies are also known as mixed market economies.
• E) Planned economies promote the use of privatization to increase market share.