Start with the first graph, 1868–1900. What do you notice about the number of black legislators elected during that period? When did the number reach its peak? Based on what you know about American history, what do you think accounted for that peak?

The correct answer is C) a system in which people earn wages and buy the goods as they choose.

A market economy is a system in which people earn wages and buy the goods as they choose.

A market economy can be defined as an economic system. In this system, the economic decisions as well as the prices of services and goods, are defined by the many interactions that have the businesses, the markets and the people in any nation.

One of the characteristics of a market economy is that the government has little or non-intervention in the regulation of prices. It is the market, -supply and demand- that establishes the economic conditions.

The market forces in modern societies drive the activities in their economies. The only case when the government intervenes is when to generate stability in the markets.