Which of the following lists correctly identifies the four main types of economic systems?

• A. Monetary, Fiscal, Planned, Unplanned
• B. Traditional, Command, Market, Mixed
• C. Private, Public, Cooperative, Competitive
• D. Capitalist, Socialist, Feudal, Mercantilist

Answer: (B)

Verified step by step guidance

1. Step 1: Understand what an economic system is — it is a method or structure by which a society organizes the production, distribution, and consumption of goods and services.
2. Step 2: Identify the four main types of economic systems commonly studied in microeconomics: Traditional, Command, Market, and Mixed economies.
3. Step 3: Recognize that Traditional economies rely on customs and traditions; Command economies are centrally planned by the government; Market economies are driven by private individuals and firms; Mixed economies combine elements of both market and command systems.
4. Step 4: Evaluate the given options by comparing them to the standard classification of economic systems to find which list matches the four main types.
5. Step 5: Conclude that the list 'Traditional, Command, Market, Mixed' correctly identifies the four main types of economic systems.