The correct answer is Option 3: USA
- A market economy is an economic system where decisions regarding investment, production, and distribution are guided by supply and demand, with minimal government intervention.
- The United States (USA) follows a market economy where businesses operate freely, and prices are determined by competition in the market.
Why not the other options?
- China follows a mixed economy with a strong role of the government, even though it has introduced market reforms. The government still has significant control over major industries.
- India has a mixed economy, where both government and private enterprises play a role in economic activities.
- Russia also has a mixed economy, with significant government involvement in key industries like oil, gas, and defense.
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