GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A tax
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An economic system
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Business ethics
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None of the above
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Detailed explanation-1: -What is an Economic System? Economic systems are the means by which countries and governments distribute resources and trade goods and services. They are used to control the five factors of production, including: labor, capital, entrepreneurs, physical resources and information resources.
Detailed explanation-2: -There are four types of economic systems – traditional, socialist/command, capitalist/market, and a mixed economy. Most countries in the world operate under a mixed economy – relying both on aspects of a capitalist and socialist system.
Detailed explanation-3: -In a command economy, the central government dictates the level of production of goods and controls their distribution and prices. Proponents of command economies argue government control rather than private enterprise can ensure the fair distribution of goods and services.