An economic system is a set of social institutions and mechanisms organized to answer society's three primary economic questions of what to produce, how to produce, and for whom to produce. It does not necessarily have to satisfy everyone in society or choose pure capitalism, but it must have a structure in place to address these questions. Additionally, it does not necessarily have to rely solely on private property as a solution to scarcity.

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An Economic System

Question 103

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.

Correct Answer: