Which of the Following Economic Systems Answers the Basic Economic

question 70

Multiple Choice

Which of the following economic systems answers the basic economic questions by copying the previous generation?

• A) Traditional economy.
• B) Command economy.
• C) Market economy.
• D) Capitalism.

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Definitions:

Competitive Markets

Markets characterized by a large number of sellers and buyers, which helps ensure fair prices and efficient distribution of goods and services.

Nonexcludable

A characteristic of a good or service that prevents the owner from effectively excluding others from using it, often leading to free-rider problems.

Public Good

Goods that are non-excludable and non-rivalrous, meaning that consumption by one individual does not reduce availability to others, and people cannot be prevented from using them.

Consumption

The act of using goods and services by households.