The Economic System in Which the Basic Economic Questions Are

question 2

Multiple Choice

The economic system in which the basic economic questions are answered through markets with some government intervention is a:

• A) command economy.
• B) mixed economy.
• C) market economy.
• D) planned economy.

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Definitions:

Equilibrium Price

A price where the supplied goods quantity is identical to the demanded goods quantity.

Law Of Demand

An increase in a product’s price will reduce the quantity of it demanded, and conversely for a decrease in price.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.

Excess Supply

The situation in which the quantity of a good or service offered by producers exceeds the quantity demanded by consumers at a given price, often leading to a decrease in prices.