The Economic System in Which Producers and Consumers Control Production

question 221

Multiple Choice

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

• A) a centrally planned economy.
• B) privatization.
• C) a market economy.
• D) communism.
• E) socialism.

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Definitions:

Losses

Financial or material reductions resulting from business activities or other endeavors.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person.

Insurer

An entity that provides insurance policies to individuals or organizations, offering financial protection against losses from specified risks.

Fraud

Intentional deception or misrepresentation made by a person with the knowledge that the deception could result in some unauthorized benefit to oneself or some other person.