Understanding Economic Systems and Their Impact -passage

What is the primary problem that economic systems aim to address?

• Scarcity of resources

• Overproduction of goods

• Inflation

• Unemployment

Which economic system relies on market forces like supply and demand to allocate resources?

• Capitalism

• Socialism

• Mixed economy

• Feudalism

What is a potential drawback of a capitalist economic system?

• Significant inequalities in wealth

• Lack of innovation

• Overemphasis on social equity

• Government overreach

How does socialism aim to reduce inequality?

• Through government intervention and planning

• By encouraging competition

• By relying on market forces

• By promoting individual success

What is a characteristic of mixed economies?

• Incorporating elements of both capitalism and socialism

• Relying solely on government intervention

• Focusing only on market-driven resource allocation

• Eliminating all forms of inequality