Which of the following is a characteristic of a market economy? Choose one answer.
A.
weak property rights
B.
limited role of government
C.
no consumer choice
D.
lack of competition
The characteristic of a market economy is the limited role of government. To understand this, let's go through each option and see why the others are not the correct choices.
A. Weak property rights: Weak property rights would actually be more closely associated with a command economy, where the government has control over property and resources.
C. No consumer choice: A market economy thrives on consumer choice, as individuals are free to make their own decisions about what goods and services to purchase.
D. Lack of competition: A market economy encourages competition among businesses, which helps drive innovation, control prices, and improve products and services.
Therefore, the correct answer is B. Limited role of government. In a market economy, the government's involvement in the economy is minimized, giving individuals and businesses the freedom to make their own economic decisions.