Praxis 5511 Practice Question
Main characteristic of a market economy?
Correct Answer: A
Rationale: A market economy is defined by individual choice and voluntary exchange, where people choose their employment based on preferences and available opportunities. This characteristic fosters competition and innovation.
Option B is incorrect as consumer roles are central; their preferences drive demand and influence production.
Option C is not applicable since a market economy lacks a central production plan; decisions are made by individuals and businesses rather than a central authority.
Option D is also wrong, as government controls are minimal in a market economy, allowing for free market dynamics rather than centralized control.
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