The Correct Answer is option 2: Only 2
A simple economy is the one in which the degree of interdependence and exchange is of a moderate degree. Whereas, in a complex economy the degree of exchange is very high.
- In simple economy the income level of the people is high: This is incorrect. In simple economy, the level of income of people is generally low.
- In complex economy, wants are multiple as well as numerous. This is correct. In a complex economy with a developed market system, individuals have diverse and numerous wants due to factors such as higher standards of living, increased variety of goods and services, and exposure to advertising and marketing.
- Degree of exchange is moderate in complex economy. This is incorrect. The degree of exchange in complex economy is very high. Complex economies typically have a high degree of exchange due to specialization and the wider range of goods and services produced. People rely on exchange to acquire what they need and want.
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