BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Government regulation
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Cost benefit analysis
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Market forces of demand and supply
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All of the above.
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Detailed explanation-1: -In a capitalist economy, the first question is answered by consumers as they spend their money. The second question is answered by producers as they compete for sales and profits. The third question is answered by those who have the money to buy the product.
Detailed explanation-2: -In a command economy, what goods and services are produced, how they are produced, and for whom they are produced are all questions answered by government planning. The government makes economic decisions for the good of society.
Detailed explanation-3: -Intensity of consumer demand guides a capitalist economy to decide what to produce. In capitalist economy the goods are produced as per the demand of the consumers. The free interaction of demand and supply is allowed.
Detailed explanation-4: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.