Which economic system relies on the interaction of buyers and sellers?
a.
social
b.
market
c.
traditional
d.
command

The correct answer is B.

Market economies rely on the free interactions of economic agents (households, firms and public sector entities) in the product and factor markets, as the most efficient manner of determining the main economic outcomes: prices and amounts produced and consumed. Efficiency of the market mechanisms would maximize social welfare, in opposition to alternative mechanisms that, for example, rely on goveremnt interventionism and distort the functioning of markets.

it allows businesses to raise prices on basic goods. it allows consumers to spend more money on products. it increases government revenue to fund public projects. it provides more money for government assistance programs.

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