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What role does land play as physical capital in the economy?

Land serves as physical capital in the economy by providing a foundation for production and economic activities. It is a key resource that can be utilized for agriculture, construction, and other industries, contributing to the overall productivity and wealth of a nation. Additionally, land can be bought, sold, and developed, making it a valuable asset for businesses and individuals to generate income and wealth.


Which of these is the key to the creation of a demand for a product?

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Which is the key to the creation of a demand for a product?

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What economic system has the government redistribute wealth based on need?

The economic system in which the government redistributes wealth based on need is known as socialism. In socialism, the state often intervenes in the economy to ensure that resources and wealth are distributed more equitably among the population, aiming to reduce inequality and provide essential services to all. This can involve taxation, social welfare programs, and public ownership of key industries. While socialism emphasizes collective well-being, its implementation can vary widely, influencing the degree of government involvement in the economy.


Disadvantage of market economy?

One of the key disadvantages of a market economy is that it is unpredictable. Many events can cause shocks in a market economy. For instance, a natural disaster or war can cause volatility in the market. A lack of stability is the key feature of the market economy.