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Answered

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Which of the following BEST describes the role of incentives in a free market economy?

A. They limit scarcity by ensuring that supply is guaranteed by the government.
B. They prevent competition and create monopolies in certain markets.
C. They serve as motivation for the choices that people and businesses make.
D. They enforce government regulations and keep goods and services affordable.

Sagot :

GinnyAnsweridn

Final answer:

In a free market economy, incentives serve as motivation for decision-making by individuals and businesses, shaping market dynamics.


Explanation:

Incentives in a free market economy play a crucial role as they serve as motivation for the choices individuals and businesses make. Incentives encourage certain behaviors and discourage others, shaping the dynamics of the market. For example, tax incentives can promote investment in specific sectors.


Learn more about role of incentives in a free market economy here:

https://brainly.com/question/38816406


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