Which of the Following Economies Would Be Characterized as Having

question 62

Multiple Choice

Which of the following economies would be characterized as having a laissez faire policy? 

• A) Pure market economy 
• B) Mixed economy 
• C) Command economy 
• D) Socialist economy

---

Definitions:

Price Ratio

The relative price of one good or service compared to another, typically used in the analysis of consumer choice and budget allocation.

Good 1

Generally represents the first good or service in an economic model, used to analyze consumer behavior or market dynamics.

Slope Of Budget Line

The slope of a budget line represents the rate at which a consumer can trade one good for another while maintaining the same level of total expenditure.

Negative Price

A situation where the seller pays the buyer to take a good or service, typically seen in unusual market conditions or to address surplus issues.