An Economic System Is

question 161

Multiple Choice

An economic system is

• A) the universe of all resources.
• B) a way to create new resources.
• C) a mechanism to allocate scarce resources.
• D) an organization that generates profits.

---

Definitions:

Budget Increase

An upward adjustment in the amount of money allocated for specific purposes, often reflecting growth or expansion in operations or projects.

Behavioural Decision Model

suggests that decision-making processes are influenced by cognitive biases, emotions, and social influences rather than being purely rational or logical.

Risk And Uncertainty

The exposure to the possibility of loss or damage and the lack of predictability in events or outcomes, respectively.

Optimizing Decision

The process of finding the most efficient, effective, or achievable decision under the given constraints, often using rigorous methods of analysis.