Classical economics played an important role in helping the United States establish which of the following?

• A. A feudal economic structure
• B. A barter system as the primary means of exchange
• C. A market-based economic system
• D. A centrally planned economy

Answer: (C)

Verified step by step guidance

1. Understand the key principles of classical economics, which emphasize free markets, competition, and limited government intervention in the economy.
2. Recognize that a feudal economic structure is characterized by rigid social hierarchies and land-based power, which classical economics does not support.
3. Note that a barter system is a primitive form of exchange without money, whereas classical economics supports the use of money and markets for efficient trade.
4. Identify that a centrally planned economy involves government control over production and distribution, which contrasts with classical economics' advocacy for market freedom.
5. Conclude that classical economics helped the United States establish a market-based economic system, where supply and demand determine prices and resource allocation.