ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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which to produce, what kind to produce, where to produce
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what to produce, how to produce, for whom to produce
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traditional, market, command
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where to produce, why to produce, for whom to produce
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Detailed explanation-1: -Economists address these three questions: (1) What goods and services should be produced to meet consumer needs? (2) How should they be produced, and who should produce them? (3) Who should receive goods and services? The answers to these questions depend on a country’s economic system.
Detailed explanation-2: -That is to produce goods for the poor or for the rich. Since the resources are scarce, the economy has to decide for whom it will produce goods. The goods are produced according to the paying capacity of the people. And this capacity depends on the income level of the people which is their purchasing power.
Detailed explanation-3: -How to produce? For whom to produce? This helps to understand which good or services are required in the society (what to produce?) with which technique these are to be made (how to produce?) and who would consume these goods( for whom to produce?).
Detailed explanation-4: -Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed?