Which characteristic is shared by all three major economic systems (market, command, and mixed economies)?

• A. They all eliminate scarcity through unlimited resources.
• B. They all operate without any form of currency.
• C. They all rely exclusively on government planning.
• D. They all must answer the basic economic questions of what to produce, how to produce, and for whom to produce.

Answer: (D)

Verified step by step guidance

1. Understand that all economic systems, regardless of type (market, command, or mixed), face the fundamental problem of scarcity, meaning resources are limited while wants are unlimited.
2. Recognize that because of scarcity, every economic system must address three basic economic questions: What to produce? How to produce? For whom to produce?
3. Analyze how each system answers these questions differently: market economies rely on supply and demand, command economies depend on government planning, and mixed economies use a combination of both.
4. Note that the presence or absence of currency or the degree of government involvement varies across systems, but the necessity to answer the basic economic questions is universal.
5. Conclude that the shared characteristic among all three major economic systems is their need to decide on resource allocation by answering what, how, and for whom to produce.