The Economic System That Answers the What, How and for Whom

question 15

Multiple Choice

The economic system that answers the What, How and For Whom questions by central authority is a:

• A) market economy.
• B) command economy
• C) traditional economy.
• D) any of these

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Definitions:

Cost Of Goods

The direct expenses associated with producing goods, including materials and labor costs, but excluding indirect expenses like distribution and sales force costs.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and payroll.

Sales

the exchange of goods or services for money, representing a key activity for businesses to generate revenue.

Basket Of Goods

This term refers to a fixed set of consumer products and services valued on a regular basis for the purpose of tracking inflation in an economy.