An economic system
A)requires a grouping of private markets linked to one another.
B)is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem.
C)requires some sort of centralized authority (such as government)to coordinate economic activity.
D)is a plan or scheme that allows a firm to make money at some other firm's expense.

Question

Quizplus · Accepted Answer

An economic system is defined by its institutional arrangements and the mechanism it uses to solve the economizing problem, which involves allocating scarce resources to satisfy unlimited wants. This includes various forms of economies like capitalism, socialism, and mixed economies, each with its own way of coordinating economic activities.

An Economic System