Question

is at the centre of economic activities in market system.​

Answer 1

Answer:

A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.

Market economies range from minimally regulated free market and laissez-faire systems where state activity is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare.

Answer 2

Answer:

a market economy is an economic system in which the decision regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand the major characteristic of a market economy is the existence of factors market that play dominant role in the allocation of capital and the factors of production