Which of the following is a pattern of economic exchange based on the supply and demand of goods and services?

Question

Quizplus · Accepted Answer

A market economy is based on the supply and demand of goods and services, where prices are determined by the interaction of buyers and sellers in a competitive market. In this type of economy, individuals, rather than the government, make most economic decisions. Therefore, it is the best choice for the pattern of economic exchange based on supply and demand. Barter system involves the exchange of goods and services without the use of money while a socialist economy is characterized by government ownership of the means of production and the distribution of goods and services according to a planned economy. Reciprocal economy refers to a system of exchange where goods and services are exchanged without the use of money, but with the expectation that the favor will be returned in the future.

Which of the Following Is a Pattern of Economic Exchange