Economic systems differ according to which two main characteristics?
A) who owns the factors of production and the methods used to coordinate economic activity
B) the technology used in production and the quantity and quality of natural resources
C) how goods are produced and who gets them
D) the political system in place and the degree of scarcity facing the economy

Question

Quizplus · Accepted Answer

Economic systems differ primarily based on who owns the factors of production (land, labor, capital) and the methods used to coordinate economic activity (market, command, traditional, mixed). Choice B is incorrect as technology and natural resources are external factors that affect economic systems but are not defining characteristics of the system itself. Choice C is incorrect as it only covers part of the equation - how goods are produced - but not the other key characteristic of who gets them. Choice D is incorrect as while the political system and scarcity can affect economic systems, they are not defining characteristics of the system itself.

Economic Systems Differ According to Which Two Main Characteristics