ECONOMICS (CBSE/UGC NET)

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ECONOMICS

ECONOMIC SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In Country D, business owners make most economic decisions. As long as they abide by fair trade policies, they can decide what to produce, how to produce, and for whom to produce without government intervention. These decisions are made by business owners based on what happens in the market. For example, a computer manufacturer recently developed a new video gaming system, but decided to wait until closer to the holidays to release the system to the public because it believed anticipation among consumers would allow the company to charge a higher price for the system
A
Command Economy
B
Market Economy
C
Mixed Economy
D
Traditional Economy
Explanation: 

Detailed explanation-1: -This private ownership, combined with the freedom to negotiate legally binding contracts, permits people to obtain and use resources as they choose. A market economy has freedom of choice and free enterprise. Private entrepreneurs are free to get and use resources and use them to produce goods and services.

Detailed explanation-2: -Command Economies Explained A command economy is a system in which a central government makes all economic decisions. Either the government or a collective owns the land and the means of production.

Detailed explanation-3: -Various measures of performance such as gross profit, net income, net worth, and equity help those in business to make economic decisions. These are important measures of financial performance, but they are not cash!

Detailed explanation-4: -Traditional Economy: A system which families, clans, or tribes make economic decisions based on customs and beliefs that have been handed down from generation to generation.

There is 1 question to complete.
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