Question

Characteristics of Wrightland

1. Decisions are made by majority rule.
2. Prices are used to allocate resources.
3. Consumer sovereignty is strong.
What type of economic system does Wrightland have?
Command economy
Communist economy
Traditional economy
Market economy

Answer 1

Market economy

Step-by-step explanation:

Wrightland exhibits all the main characteristics of a market economy: in this economy, consumers and suppliers meet in the market, and throught the forces of supply and demand, determine the prices of goods and services.

These prices all serve the purpose of signalling the appropriate economic activitities to allocate resources.

In market economies, consumers are also very important, and businesses try to satisfy consumers in order to make higher profits.