An Economy in Which Individual People and Firms Pursue Their

question 94

Multiple Choice

An economy in which individual people and firms pursue their own self-interest without any central direction or regulation is a(n)

• A) command economy.
• B) laissez-faire economy.
• C) invisible-hand economy.
• D) private-sector economy.

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Definitions:

Capital Goods

Items used in the production of goods and services, such as machinery, tools, and buildings, rather than goods consumed directly by end users.

Meager Wages

Very low remuneration for work that often does not suffice for basic living expenses.

Economic System

Refers to the structure and methods by which a society manages and allocates its resources, including how goods and services are produced, distributed, and consumed.

Marketplace

A venue (physical or digital) where buyers and sellers interact to exchange goods, services, or information.