Comparison of Economic Systems Indicates That

question 119

Multiple Choice

Comparison of economic systems indicates that

• A)most nations have either a purely socialist economy or a purely capitalist economy.
• B)most countries have mixed economies.
• C)socialist economies are clearly superior in producing consumer goods.
• D)capitalist economies are clearly superior in distributing income.
• E)all countries have largely traditional economies.

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Definitions:

Loanable Funds

The market where savers supply funds for loans to borrowers, often illustrated by the supply and demand for loans.

Interest Rate

The chunk of a loan taken as interest by the borrower, typically outlined as an annual percentage of the loan's outstanding balance.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to downward pressure on prices.

Loanable Funds

Loanable funds refer to the money available for borrowing in the financial markets, composed of savings from households and businesses plus any government surplus.