The manner in which a nation allocates its limited resources and distributes goods and services is called a(n):
1. command economy.
2. vertical integration.
3. law of supply.
4. economic system.
4. economic system.
The correct answer is 4. economic system.
The correct answer is 4. economic system.
To arrive at this answer, we can analyze the definitions and understandings of each option.
1. Command economy: This term refers to an economic system where all activities, including the allocation of resources and distribution of goods and services, are controlled and determined by a centralized authority like the government. While it does involve resource allocation and distribution, it is not a comprehensive term to describe the entire economic system.
2. Vertical integration: This term refers to a business strategy where a company controls and manages different stages of the production process within a single industry. While it might impact the allocation of resources and distribution of products within a specific company, it does not encompass the entire economic system of a nation.
3. Law of supply: This concept is a fundamental principle in economics that states the relationship between the quantity of a good or service supplied and its price. Although it is an important principle within an economic system, it only focuses on the behavior of suppliers and does not encompass the broader aspects of resource allocation and distribution.
4. Economic system: This term refers to the structure and organization of an economy. It encompasses various principles, rules, and institutions that influence how resources are allocated and goods and services are distributed within a nation. It is the most appropriate answer as it covers the entire framework of how a nation manages and allocates its limited resources and distributes goods and services.
Therefore, the correct answer is option 4. economic system.