ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The response to market failure
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To address equity concerns to improve fairness
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To determine the allocation of limited resources
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To protect domestic producers from foreign competition
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Detailed explanation-1: -Which of the following best describes the primary role of an economic system? Answer: C-To determine the allocation of limited resources is best describes the primary role of an economic system.
Detailed explanation-2: -An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Economic systems regulate the factors of production, including land, capital, labor, and physical resources.
Detailed explanation-3: -Theoretically, it may refer to an economic system that combines one of three characteristics: public and private ownership of industry, market-based allocation with economic planning, or free markets with state interventionism.
Detailed explanation-4: -An economic system is any system of allocating scarce resources. Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed?
Detailed explanation-5: -In a free market economy, resources are allocated through the interaction of free and self-directed market forces. This means that what to produce is determined consumers, how to produce is determined by producers, and who gets the products depends upon the purchasing power of consumers.