In _____________ economy, private sector dominates the economic activity.
Which of the following options suits best in the above blank?
Answer & explanation
Correct answer: option 2
The Correct Answer is option 2: market
In market economy, private sector dominates the economic activity. In centrally planned economy, the government is responsible for all the decisions regarding the economic activities. Whereas, in mixed economy, both, government and market forces play an important role in price determination.