What marks the key difference between economic systems?
A) The way the factors of production are managed
B) The way goods are transported within their borders
C) The way rules and regulations are legislated
D) The way workers are relocated to different regions
E) The way basic necessities are determined

Question

Quizplus · Accepted Answer

The way the factors of production (land, labor, capital, and entrepreneurship) are managed is the key difference between economic systems. Some economic systems, such as capitalism, rely on private ownership and market forces to allocate resources, while others, such as communism, rely on state ownership and central planning. This fundamental difference in resource management affects all other aspects of the economy, including the allocation of goods and services and the distribution of income.

What Marks the Key Difference Between Economic Systems