Which of the following is the most common economic system in the world?

• A. Mixed economy
• B. Market economy
• C. Traditional economy
• D. Command economy

Answer: (A)

Verified step by step guidance

1. Understand the definition of each economic system: A market economy relies on supply and demand with minimal government intervention; a traditional economy is based on customs and traditions; a command economy is controlled by the government; and a mixed economy combines elements of both market and command economies.
2. Recognize that the question asks for the most common economic system worldwide, which implies looking at how economies function in practice across countries.
3. Consider that many countries today do not operate purely as market or command economies but instead have a blend of government regulation and market forces.
4. Recall that a mixed economy allows for both private enterprise and government intervention, making it flexible and widely adopted globally.
5. Conclude that the mixed economy is the most common economic system because it balances the benefits of market freedom with government oversight, fitting the economic structures of most countries.