ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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profit
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private property rights
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Social Security
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capitalism
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Detailed explanation-1: -In a command economy, the central government dictates the level of production of goods and controls their distribution and prices.
Detailed explanation-2: -Voluntary exchange is a transaction where two people trade goods or services freely, there is no coercive or restrictive force involved in the transaction. Both parties want to make the exchange items, and both parties will benefit from the trade. Voluntary exchange is an essential concept in the free market economy.
Detailed explanation-3: -Individuals satisfy their unlimited wants in a world of limited resources by making choices. The need to make choices arises because of scarcity, the basic problem in economics. Individuals are forced to make trade-offs every time they use their resources in one way and not in another.
Detailed explanation-4: -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.