Identify a true statement about pure market economies. They do not allow people the freedom to choose their source of livelihood. They do not make sufficient provision for the old, the young, and the sick. They create enough value to support the environment. They stifle entrepreneurship and creative innovation.

Question

Kamora

Business

28 December, 01:03

Identify a true statement about pure market economies. They do not allow people the freedom to choose their source of livelihood. They do not make sufficient provision for the old, the young, and the sick. They create enough value to support the environment. They stifle entrepreneurship and creative innovation.

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Answers (1)

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Armstrong · Answer 1

The correct answer is letter "B": They do not make sufficient provision for the old, the young, and the sick.

Explanation:

A pure market economy is one where economic decisions are taken not by central planning but by market forces. It refers to the cumulative impact of the free-will decisions taken by individual agents in the economy, such as customers and companies. As the government does not have any relevant contribution, in this type of economies social programs are unattended. Therefore, there might not be enough provision for the old, young and sick under this regime.