Question

a societys institutional mechanism for determining the way in which scarce resources are used to satisfy human desires refers to its

a. economic system.

b. economic infrastructure.

c. economy.

d. macroeconomics.

Explanation:

To solve this, we analyze each option:

• Option A: An economic system is the institutional mechanism that determines how scarce resources are allocated to satisfy human desires. This matches the definition.
• Option B: Economic infrastructure refers to the physical and organizational structures supporting an economy (e.g., roads, banks), not resource allocation mechanisms.
• Option C: Economy is a broader term for the production, distribution, and consumption of goods/services, not specifically the institutional mechanism for resource allocation.
• Option D: Macroeconomics is the study of the economy as a whole (e.g., inflation, GDP), not the resource - allocation mechanism.

Answer:

A. economic system.