Question

James is the warehouse supply manager for a major tool corporation. It is his job to take inventory of the tools the company has available and send orders to make more tools when supplies run low. This supply and demand form of production is an example of a________________ economy. Multiple Choice

a.market
b.command
c.private
d.public
d.socialista.

Answer 1

The correct answer is (a)

Step-by-step explanation:

Market economy is a system where demand and supply determines the production of goods and service. Complete supply and demand is analysed to determine production and prices. In the above scenario, James is following market economy form of production system. This is the best way to examine the production system because market economy is an effective tool to use the available resources.