ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market
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Command
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Traditional
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Modern or Mixed
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Detailed explanation-1: -A market (also called capitalist) economy is one in which answers to the three basic questions are the cumulative result of many individual decisions about what to buy and what to sell in the public marketplace.
Detailed explanation-2: -In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
Detailed explanation-3: -Individual producers and consumers provide the answers to the 3 basic economic questions. In a market economy who answers the 3 basic economic questions? Individual producers and consumers. Relies on profit motive, economic competition and supply/demand forces.
Detailed explanation-4: -Historically, there have been three basic types of economic system: traditional, command, and market.