An economic system consists of a set of institutional arrangements and a method of coordinating economic activity. The two polar extremes of economic systems are the command system and the market system.
Which of the following are characteristics of the market system? Check all that apply.
-Production goals or targets are transmitted from top authorities to the individual producing units.
-A dictator or a group of central planners answers the fundamental economic questions.
-The independent decisions of individuals in the marketplace determine the answers to the fundamental economic questions.
True or False: The United States economy is an example of a pure market system.
True
False
