The following constitute the criteria for identifying an economic system except?

Analyze the question: We need the one option that is NOT a criterion used to identify (distinguish) an economic system.

Concept: An economic system (capitalist, socialist, mixed, traditional) is the way a society organizes the production and distribution of goods and services. Economic systems are distinguished from one another by:

1. Ownership of resources: private, government, or both (capitalism vs. socialism).
2. Method of decision making: market forces/price mechanism, central planning, or custom and tradition.
3. Motivation for production: profit motive, social welfare, or subsistence.

Scarcity of resources is different. Scarcity is the basic economic problem that every society faces, whatever its system. Since all systems share it, it cannot be used to tell one system from another. It is the reason economic systems exist, not a feature that separates them.

Step by step:

• A. Ownership of resources: differs between systems, so it is a criterion.
• B. Scarcity of resources: common to all systems, so it is not a criterion.
• C. Method of decision making: differs between systems, so it is a criterion.
• D. Motivation for production: differs between systems, so it is a criterion.

Answer: B. Scarcity of resources

Exam tip: For "except" questions, look for the option that is universal (true of all systems). Criteria for classification must be things that vary between systems. Scarcity is the problem, while ownership, decision making, and motivation are how systems respond to it.