🎓 GED Exam Prep

A key characteristic of a market economy is that economic decisions are primarily driven by:

A Central government planning and control.
B The interaction of supply and demand in free markets.
C Traditional customs and social hierarchies.
D The desire to achieve complete economic equality.

✓ Correct Answer: Option B

In a market economy, resources are allocated and prices are determined mainly through the forces of supply and demand, with limited government intervention and often private ownership of resources.

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