ECONOMICS (CBSE/UGC NET)

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: -An economic system is any system of allocating scarce resources. Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed? There are two extremes of how these questions get answered.

Detailed explanation-3: -There are three main types of economic systems: command, market, and mixed. We will briefly describe each of these three types.

Detailed explanation-4: -The correct option is d. What happens when you add to or subtract from a current situation?. The central or fundamental questions of economics are: what to produce, how to produce, and for whom to produce. So, the effect of any addition or subtraction on the on-going situation is not a fundamental question.

Detailed explanation-5: -What to produce and what quantity to produce? How to produce? For whom to produce the goods? How efficient are the resources being utilised? Is the economy growing?