An Economic System

question 59

Multiple Choice

An economic system:

• A)must answer the three economic questions to the satisfaction of everyone in society.
• B)must not allow some members of society to gain an unfair advantage when answering the three economic questions.
• C)must choose pure capitalism to adequately answer the three economic questions.
• D)is a set of social institutions and mechanisms organized to answer society's three primary economic questions.
• E)can address problems of scarcity only by embracing the social institution of private property.

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Definitions:

Sales Tax

A tax imposed by the government on the sale of goods and services.

Percentage

A percentage is a mathematical term that describes a number expressed as a fraction of 100, used to denote a portion of a total.

Compound Interest

The interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Exponential Growth

A growth pattern characterized by the rate of increase becoming quicker relative to the growing total number or size.