The expansion of competition which provides customers with many choices is called a(n) ______ economy.

• A. command
• B. mixed
• C. market
• D. traditional

Answer: (C)

Verified step by step guidance

1. Understand the key terms related to economic systems: a command economy is one where the government controls production and distribution; a mixed economy combines elements of both government control and free markets; a traditional economy relies on customs and traditions; and a market economy is characterized by competition and consumer choice.
2. Identify the phrase 'expansion of competition which provides customers with many choices' as a defining feature of a market economy, where supply and demand determine prices and production.
3. Recall that in a market economy, businesses compete to offer goods and services, giving consumers a variety of options to choose from.
4. Recognize that the other options (command, mixed, traditional) do not primarily emphasize competition and consumer choice in the same way.
5. Conclude that the correct term to fill in the blank is 'market' economy, as it best fits the description provided.