An economic system is
A) the universe of all resources.
B) a way to create new resources.
C) a mechanism to allocate scarce resources.
D) an organization that generates profits.

Question

Quizplus · Accepted Answer

An economic system is a mechanism that enables the efficient allocation of scarce resources among competing needs and wants. It includes various institutions, laws, and policies that coordinate the production, distribution, and consumption of goods and services in a society. The goal of an economic system is to maximize social welfare by utilizing available resources in the most efficient and sustainable way possible. It does not involve creating new resources or exclusively generating profits.

An Economic System Is