An economic system _____

Question

Quizplus · Accepted Answer

An economic system is a set of social institutions and mechanisms organized to answer society's three primary economic questions - what to produce, how to produce, and for whom to produce. It can take various forms such as capitalism, socialism or mixed economy, depending on the degree to which individual ownership and market forces are allowed to play a role in the allocation of resources. A legal system may be necessary for an economic system to function effectively, but it is not a defining characteristic of an economic system. Private property is also not a must for addressing the problem of scarcity, as some societies may use communal property systems or state ownership.

An Economic System _____