Economies Based on ____________________ of Business That Tend to Let

question 144

Short Answer

Economies based on ____________________ of business that tend to let the law of supply and demand allocate resources are called market economies.

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Definitions:

Marginal Utility

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Budget Constraint

A concept in economics that represents all the combinations of goods and services that a consumer may purchase given current prices and their income level.

Price

The cost of buying a product or service, typically influenced by the balance of supply and demand.

Budget Constraint

The limits imposed on household or individual choices by income, wealth, and product prices, dictating the combination of goods and services that can be purchased.