9 Questions
Which type of economic system is characterized by decentralized economic decisions?
Market system
What is China's economic system often referred to as?
Socialist market economy
What is an economic system?
A way to allocate resources to producing goods and services
Which of the following best describes a market system?
An economic system where economic decisions are decentralized
What is China's economic system often referred to as?
A market socialist economy
What is the primary function of an economic system?
To produce goods and services
Which of the following is NOT considered a natural resource according to the text?
Human labor
Which of the following is NOT included in the category of capital resources according to the text?
Stocks
Which of the following is NOT one of the fundamental economic questions listed in the text?
When to produce
Study Notes
Economic Systems
- A decentralized economic system is characterized by decentralized economic decisions.
China's Economic System
- China's economic system is often referred to as a mixed economy.
Definition of Economic System
- An economic system is a system of production, resource allocation, and distribution of goods and services.
Market System
- A market system is characterized by private ownership of the means of production, creation of goods and services for profit, and distribution of goods and services based on market prices.
Primary Function of Economic System
- The primary function of an economic system is to allocate resources to meet the unlimited wants and needs of society.
Natural Resources
- Not all resources are considered natural resources (e.g., human-made resources).
Capital Resources
- Not all resources are considered capital resources (e.g., labor, entrepreneurship).
Fundamental Economic Questions
- The fundamental economic questions are: what to produce, how to produce, and for whom to produce.
Test your knowledge on economic systems with this quiz! Learn about the differences between market-based and command-based systems, and how they allocate resources to produce goods and services. Discover the unique features of China's socialist market economy and more. Get ready to become an expert in economic systems!
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