contestada

In which type of economy are the largest variety of goods and services produced? A. market B. command C. traditional D. demand

Respuesta :

Lanuel

Answer:

A. Market

Explanation:

An economy can be defined as an inter-related process of production between producers (manufacturers), distributors and consumers of goods and services, which primarily determines how scarce resources are used or allocated in a specific country. There are four (4) main types of economy and these are;

1. Traditional economy.

2. Mixed economy.

3. Command economy.

4. Market economy.

A type of economy in which the largest variety of goods and services are produced is a market economy because their prices are mainly determined or dependent on supply and demand.

This ultimately implies that, both supply and demand influence economic decisions such as what goods are to be produced, how many should be produced, what price should they be sold, distribution method to be used, who buys the goods etc.

Hence, a market economy is relatively free of government intervention, as well as government interference with profits and the factors of production such as land, labor, capital etc.