In which type of economy, all the decisions are taken with a view to…

The correct answer is Option 3: Market economy

In a market economy, the primary goal of economic agents (individuals, businesses, and consumers) is to maximize their own self-interest. This often translates into businesses seeking to maximize profits. The interaction of supply and demand in the market determines prices and resource allocation, leading to a system where profit maximization is a driving force.

While other economic systems also consider profit, they may have additional objectives or constraints. In a centrally planned economy, the government makes decisions to achieve broader social goals, which may not always prioritize profit maximization. In a mixed economy, there is a combination of market forces and government intervention, which can influence profit-seeking behavior.