ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Command
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Market
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Traditional
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None of the above
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Detailed explanation-1: -Most economic decisions are made by buyers and sellers, not the government. A competitive market economy promotes the (4) efficient use of its resources. It is a (5) self-regulating and (6) self-adjusting economy.
Detailed explanation-2: -The four main types of economic systems are a pure market economy, a pure command economy, a mixed economy, and a traditional economy.
Detailed explanation-3: -For example, in a free market, consumers have the highest levels of consumer sovereignty. The consumer is free to buy any commodity and in whatever quantities his likes. However, in a command economy, the state or central government decides what to produce.
Detailed explanation-4: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.