Which of the following lists economic systems in order from least to most flexible?

• A. Market economy, mixed economy, command economy
• B. Command economy, market economy, mixed economy
• C. Mixed economy, command economy, market economy
• D. Command economy, mixed economy, market economy

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of economic systems and their flexibility. Flexibility here refers to how easily an economy can adapt to changes, such as consumer preferences, technology, or resource availability.
2. Step 2: Define the three economic systems: A command economy is centrally planned with little room for individual decision-making; a mixed economy combines elements of both market and command systems; a market economy relies mostly on supply and demand with minimal government intervention.
3. Step 3: Analyze the flexibility of each system: Command economies are least flexible because decisions are made by the government, limiting responsiveness; mixed economies have moderate flexibility due to a balance of government control and market forces; market economies are most flexible as they allow prices and production to adjust freely.
4. Step 4: Arrange the economic systems from least to most flexible based on the analysis: Command economy (least flexible), mixed economy (moderately flexible), market economy (most flexible).
5. Step 5: Confirm that the correct order matches the given answer: Command economy, mixed economy, market economy.