In which type of economy does consumer preference play the GREATEST role in determining economic activity?
A.
mixed economy
B.
market economy
C.
command economy
D.
traditional economy
B. Market economy
What form of economy do MOST countries in Asia have?
A.
mixed economies
B.
traditional economies
C.
pure market economies
D.
pure command economies
A. Mixed economies
Which country is an autocracy?
A.
China
B.
Japan
C.
North Korea
D.
South Korea
C. North Korea
The correct answer is B. market economy. In a market economy, consumer preferences play the greatest role in determining economic activity. In this type of economy, decisions about what to produce, how much to produce, and at what price are primarily influenced by the demands and preferences of consumers in the market. The interaction between buyers and sellers in a competitive market helps determine the allocation of resources and the production of goods and services.
The correct answer is B. market economy.
In a market economy, consumer preference plays the greatest role in determining economic activity. In this type of economy, resources are allocated based on supply and demand in the market. Consumers have the freedom to choose what goods and services they want to buy, and their preferences directly influence the production and allocation of resources.
To arrive at this answer yourself, let's briefly examine each type of economy:
A. Mixed economy: In a mixed economy, both the government and the private sector play a role in determining economic activity. While consumer preference is an important factor, it is not the sole determinant. The government also has authority and control in some areas, which can influence economic decisions.
B. Market economy: As mentioned earlier, in a market economy, consumer preference plays the greatest role. The production and allocation of goods and services are primarily driven by the choices and demands of consumers in the market.
C. Command economy: In a command economy, the government or a central authority controls and directs economic activity. Consumer preference has minimal influence in this type of economy, as decisions are made by the governing body.
D. Traditional economy: A traditional economy is based on customs, traditions, and cultural beliefs. Economic activities are determined by these customs rather than consumer preferences.
By comparing the characteristics of each type of economy, we can conclude that in a market economy, consumer preference has the greatest impact on determining economic activity.