Question

Which of the following is the best description of what an economic system is?

a) A way of getting people what they want.
b) B. An organized way a society attempts to allocate its scarce resources.
c) A Market System.
d) An unorganized way a society decides what is important.

Answer 1

An economic system is an organized method a society uses to allocate scarce resources to meet the wants and needs of its population, by making key decisions on production and distribution.

Step-by-step explanation:

An economic system is an organized way a society attempts to allocate its scarce resources to provide for the wants and needs of its people. It involves managing the production, distribution, and consumption of goods and services. Every economy faces the reality of scarcity, which necessitates answering three fundamental questions: 'what to produce?', 'how to produce?', and 'for whom to produce?'

Economic systems can be traditionally categorized as market economies (capitalist), command economies (communist or planned), or a blend of the two. Market economies are characterized by private ownership and decision-making through markets, while in command economies, resources and decisions are centrally managed by the government. Globalization has significantly influenced economic systems, resulting in increased interdependence across national borders due to the growth of commercial and financial networks.