Which economic system do most countries operate under today?

• A. Traditional economy
• B. Mixed economy
• C. Pure market economy
• D. Command economy

Answer: (B)

Verified step by step guidance

1. Understand the definitions of the main economic systems: a Traditional economy relies on customs and traditions; a Pure market economy is driven entirely by supply and demand with minimal government intervention; a Command economy is centrally planned and controlled by the government; a Mixed economy combines elements of both market forces and government intervention.
2. Recognize that most modern countries do not operate under purely traditional, pure market, or purely command economies because these systems have limitations in addressing complex economic needs.
3. Identify that a Mixed economy allows for both private enterprise and government regulation, which helps balance efficiency with social welfare.
4. Recall examples of countries with mixed economies, where markets operate freely but governments intervene to regulate or provide public goods and services.
5. Conclude that the economic system most countries operate under today is the Mixed economy, as it incorporates the advantages of both market mechanisms and government oversight.