The Economic System That Includes Private Ownership of Most Resources

question 63

Multiple Choice

The economic system that includes private ownership of most resources and the coordination of economic activity by price signals generated by market forces is

• A)capitalism
• B)socialism
• C)communism
• D)mercantilism
• E)progressivism

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ranking for various bundles of goods, used in economics to analyze consumer behavior.

Barbie's Preferences

This term does not reference a recognized economic concept, but could figuratively refer to a theoretical model of consumer choice or preference, using Barbie as an example.

Good 1

Good 1 typically refers to a specific item or product in economic models, representing a variable used to analyze various economic scenarios.

Price Elasticity

An indicator of the sensitivity of the demand for a product to shifts in its price.