A characteristic of a modem economy is (LO2) a) self-sufficiency b) specialization and exchange c) a high percentage of people who make their living as jacks-of-all-trades d) a high proportion of people employed in agriculture

A modern economy is characterized by a complex system of production, distribution, and consumption of goods and services. This involves diversified and specialized production, as well as trade and exchange of goods and services among individuals, businesses, and countries. It is important to identify which of the given options reflects these characteristics.

a) Self-sufficiency: This means relying entirely on one's own resources or abilities to produce everything one needs. This does not depict a modern economy where specialization, trade, and exchange play a significant role. b) Specialization and exchange: In a modern economy, individuals, businesses, and countries often specialize in the production of certain goods or services where they have a comparative advantage. They then exchange these goods and services with others, creating a global network of trade. This option aligns with the characteristics of a modern economy. c) A high percentage of people who make their living as jacks-of-all-trades: This option suggests that people work in various roles and industries, which may not be efficient or productive. In a modern economy, specialization allows for increased efficiency and productivity. d) A high proportion of people employed in agriculture: While agriculture is important, a modern economy is characterized by a diverse range of industries, including services, manufacturing, and technology. This option is not a primary characteristic of a modern economy.

Among the given options, option b) specialization and exchange best describes a characteristic of a modern economy, as it reflects the important aspects of trade, exchange and efficient production. Therefore, the correct answer is: b) Specialization and exchange