Risk is a problem faced
A) only in market systems.
B) only in command systems.
C) in both market systems and command systems.
D) in neither market systems nor command systems, only in laissez-faire capitalism.

Question

Quizplus · Accepted Answer

Risk is inherent in any economic system, whether it be market or command. In market systems, risk is borne by individual actors, who take on the potential for loss in pursuit of profit opportunities. In command systems, risk is borne by the state, which must make decisions about how to allocate resources and manage economic activity in the absence of market signals. Neither system is immune to risk, and both require mechanisms for managing and mitigating it. The fourth choice (D) is not a valid option, as laissez-faire capitalism is a specific type of market system and not a distinct economic system in its own right.

Risk Is a Problem Faced