Praxis 7815 Practice Question
A social studies teacher creates a classroom store in which students can sell and buy items that they have produced. The activity best models which of the following economic models?
Correct Answer: D
Rationale: The activity exemplifies a market economy, where individuals engage in voluntary exchanges of goods and services, driven by supply and demand. Students producing and trading items mirrors the principles of competition and consumer choice inherent in market economies.
Option A, communism, involves collective ownership and central planning, lacking individual entrepreneurship. Option B, a command economy, features government control over production and distribution, which is not present in this student-driven initiative. Option C, feudalism, is characterized by a rigid hierarchical system of land ownership and service, unrelated to the voluntary trade depicted in the classroom store.
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