Definition of Economic System - SS1 Economics Past Questions and Answers - page 1
1
What is an economic system?
A
A set of rules and practices that determine how goods and services are produced, distributed, and consumed in a society.
B
A set of rules that determine the type of goods and services that are produced in a society.
C
A set of institutions that control the prices of goods and services in a society.
correct option: a
Users' Answers & Comments2
Which economic system is characterized by private ownership of the means of production and free market competition?
A
Capitalism
B
Socialism
C
Communism
correct option: a
Users' Answers & Comments3
What is the main purpose of an economic system?
The main purpose of an economic system is to allocate resources and distribute goods and services in a society.