Which example shows best how colonial america was a market economy?
a) colonists refused to pay taxes to the british crown.
b) colonists could keep the profits from their businesses.
c) the british navy protected colonists from foreign attacks.
d) the british crown limited colonial trade with foreign countries.

The correct answer is B) Colonists could keep the profits from their businesses.

Explanation:

A market economy refers to a system in which individuals can create their own business and compete; additionally, in a market economy factors such as price or production depend on both the demand (products desired by consumers) and the supply (products offered by business).

In the case of colonial America, this was part of a market economy because, despite Great Britain controlled many aspects in the colony, individuals could create their own business and use it to earn a profit, mainly by exporting products that could only find in America. Also, the production and exportation depend on the rate production of the seller (supply) and the desires of the consumers in Europe (demand). Thus, the best example of colonial America as a market economy is "Colonists could keep the profits from their businesses".

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