The Economic System That Is Generally Considered to Be the Most

question 44

Multiple Choice

The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:

• A) market economy.
• B) command economy
• C) soviet economy.
• D) traditional economy.

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Definitions:

Best Alternative

The Best Alternative usually refers to the most favorable option or choice that is available to an individual or organization from a set of possibilities.

Benefits

Forms of compensation provided to employees or the public, including health insurance, pension, and unemployment assistance.

Opportunity Cost

The cost of what is forgone in order to pursue a certain action; the value of the best alternative option that is not selected.

Subjective Values

The notion that the value of goods and services is determined by the preferences and perceptions of individuals, rather than by intrinsic characteristics.