Economic systems can be classified based on
A)the ownership of resources only
B)the ownership of resources, the types of crops grown, and the incentives used to motivate people
C)the way resources are allocated to produce goods and services and the incentives used to motivate people only
D)the ownership of resources, the way resources are allocated to produce goods and services, and the incentives used to motivate people
E)the ownership of resources, the way resources are allocated to produce goods and services, and the average education of workers

Question

Quizplus · Accepted Answer

Economic systems can be classified based on three main components: ownership of resources, allocation of resources to produce goods and services, and incentives used to motivate people. Therefore, choice D is the best option as it includes all three components in its classification of economic systems. Choices A, B, and C only include one or two of these components, while choice E includes an irrelevant factor (average education of workers).

Economic Systems Can Be Classified Based on