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QuizMultiple Choice

Fundamental Economic Concepts: Basic Principles — Test

Question 1 • Economics

What kind of economy uses a free-enterprise system?

Answer
A
a closed economy
B
a traditional economy
C
a command economy
D
a market economy

Explanation

A free-enterprise system lets individuals and businesses make most economic decisions, with prices largely shaped by supply and demand. That describes a market economy. A command economy relies on government direction, while a traditional economy follows long-standing customs.

AI-written and checked against the verified answer.

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