A Pattern of Economic Exchange Based on the Supply and Demand

question 37

Multiple Choice

A pattern of economic exchange based on the supply and demand of goods and services is called:

• A) market economy
• B) barter system
• C) socialist economy
• D) reciprocal economy
• E) faltering economy

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Definitions:

Income

Financial returns, especially continual, from work or investing activities.

Price of X

The amount of money required to purchase a product or service named X.

Consumption of Y

Represents the amount or volume of good Y that is utilized or consumed over a period.

Utility Function

A mathematical representation that ranks an individual's preferences for various goods and services, aiming to measure their level of satisfaction.