ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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any good for which consumers are willing to pay a high enough price
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only those goods whose long-term profits are greater than average profits
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any good whose production is characterized by the lowest cost of technology
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any good that returns its producers sufficient revenue to cover its total costs
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Detailed explanation-1: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.
Detailed explanation-2: -In practice, communism is an economic system in which all important economic deci-sions are made by government leaders. These leaders decide what, how, and for whom goods and services will be produced. The way goods are produced and distributed is controlled by government leaders for the good of society as a whole.
Detailed explanation-3: -A market economy, also known as a free market or free enterprise economy, is a system in which economic decisions, relating to things such as the prices of goods and services, are determined by supply and demand.
Detailed explanation-4: -Businesses are sellers in the market for goods and services. Businesses sell goods and services in exchange for money, which in this case is called revenue. Businesses are buyers in the markets for resources.