Which of the following is a characteristic of a market economy? (1 point) Responses weak property rights weak property rights limited role of government limited role of government no consumer choice no consumer choice lack of competition
limited role of government
The characteristic of a market economy among the given options is:
- Limited role of government
A characteristic of a market economy is a limited role of government. This means that the government's influence and intervention in the economy are minimal. In a market economy, private individuals and businesses have the freedom to make economic decisions, such as what to produce, how to produce it, and for whom to produce. The government's role is primarily to establish and enforce basic rules and regulations to ensure fair competition, protect property rights, and provide public goods and services.
To determine the correct answer from the given options, we can assess each one:
1. Weak property rights: This contradicts the characteristic of a market economy because strong property rights, where individuals have the right to own and control their property, are essential for markets to function efficiently. Therefore, this option is not correct.
2. Limited role of government: This aligns with the characteristic of a market economy mentioned above, where the government's involvement in the economy is restricted. Hence, this option is correct.
3. No consumer choice: This contradicts the nature of a market economy, as consumer choice is a fundamental component. In a market economy, consumers have the freedom to choose between different goods and services based on their preferences and buying power. Therefore, this option is not correct.
4. Lack of competition: This is also contradictory to a market economy. In a market economy, competition among producers and sellers is encouraged to drive innovation, improve quality, and offer consumers a broad range of choices. Thus, this option is not correct.
Therefore, the correct characteristic of a market economy from the given options is a limited role of government.