Question

Match the economic system to its definition.

Economic Systems:

Market economy
Mixed economy
Traditional economy
Command economy
Definitions:
A. An economy where a central government determines both the allocation of resources and the production of goods and services.
B. An economy that takes elements from both a market economy and a command economy to allocate resources and determine the production of goods and services.
C. An economy where culture determines both the allocation of resources and the production of goods and services.
D. An economy where price signals, resulting from supply and demand forces within the economy, determine the allocation of resources and the production of goods and services.

Answer 1

Market economy — D
Mixed economy — B
Traditional economy — C
Command economy — A