AnswersEconomics Full-YearPractice TestQuestion 5
5
practice testMultiple Choice

Practice Test

Question 5 • Economics (Full-Year)

Which statement best describes the function of an economic system?

Answer
A
It examines how effectively goods are being produced and how well employees are being treated.
B
It decides what should be produced, how it should be produced, and for whom it should be produced.
C
It determines how a country will spend the money it makes selling goods and services to other countries.
D
It creates regulatory organizations designed to protect owners, workers, the environment, and the country.

Explanation

An economic system organizes how a society uses its resources. Its central questions are what goods and services to produce, how to produce them, and who will receive them. Choice B states these three questions; the other choices describe narrower activities, not the overall function of an economic system.

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