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AveGali [126]
3 years ago
10

1. Economic systems An economic system consists of a set of institutional arrangements and a method of coordinating economic act

ivity. The two polar extremes of economic systems are the command system and the market system. Which of the following are characteristics of the market system? Check all that apply. Production goals or targets are transmitted from top authorities to the individual producing units. The independent decisions of individuals in the marketplace determine the answers to the fundamental economic questions. A dictator or a group of central planners answers the fundamental economic questions.\\
Business
1 answer:
Marta_Voda [28]3 years ago
3 0

Answer:

The independent decisions of individuals in the marketplace determine the answers to the fundamental economic questions.

Explanation:

The study of Economic Science allows us to understand the fundamental premises that govern the functioning of market economies. A market economy operates freely - the decisions of the economic agents are independent - which leads us to understand determining questions, such as how much to produce and how much to employ.

A market economy operates under the logic of the interaction between supply and demand of goods and services, so that companies act in a system of competition, via prices, for market share. Thus, consumers benefit from competition and the role of government is only to ensure the right environment for economic transactions.

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