The two main forms of economic organization are:
A)The administrative mechanism within the firm and the market mechanism
B)The administration by the state and the free market
C)The visible hand and the pressure from politicians
D)The invisible hand of the market and micro-economic mechanisms

Question

Quizplus · Accepted Answer

The administrative mechanism within the firm refers to the way a company is run internally through management and decision-making processes. The market mechanism refers to the way resources are allocated through supply and demand in a free market economy. These are the two primary ways in which economic activity is organized. Option B is incorrect because state administration is not a form of economic organization, but rather a form of government. Option C is incorrect because the visible hand is not a recognized term in economics, and pressure from politicians is a factor that can affect economic activity, but not a form of economic organization. Option D is incorrect because the invisible hand of the market is a concept within the market mechanism, not a separate form of economic organization. Micro-economic mechanisms are part of the market mechanism.

The Two Main Forms of Economic Organization Are