ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market Economy
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Traditional Economy
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Command Economy
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Mixed Economy
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Detailed explanation-1: -A market economy is a type of economic system where supply and demand regulate the economy, rather than government intervention. A true free market economy is an economy in which all resources are owned by individuals.
Detailed explanation-2: -An economy that depends only on the market forces of demand and supply is called a capitalist economy.
Detailed explanation-3: -Consumers buy goods and services to satisfy their wants, and producers make goods and services.
Detailed explanation-4: -A society’s economy is based on creating wealth through selling and buying. The people who do the selling and buying are producers and consumers. Producers create, or produce, goods and provide services, and consumers buy those goods and services with money. Most people are both producers and consumers.