ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Traditional economic system
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Command economic system
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Mixed economic system
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Market economic system
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Detailed explanation-1: -One of the most important characteristics of a market economy, also called a free enterprise economy, is the role of a limited government. Most economic decisions are made by buyers and sellers, not the government.
Detailed explanation-2: -A market economy is an economic system where two forces, known as supply and demand, direct the production of goods and services. Market economies are not controlled by a central authority (like a government) and are instead based on voluntary exchange.
Detailed explanation-3: -In a free-market (capitalist) economy, individuals own the factors of production: Businesses produce products. Consumers choose the products they prefer leading the companies that produce them to make more profit.
Detailed explanation-4: -It is not organized by any central authority but is instead determined by the supply and demand of goods and services. The United States, England, and Japan are all examples of market economies.