ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What goods and services should be produced?
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When will these goods and services be produced?
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How should these goods and services be produced?
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Who consumes these goods and services?
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Detailed explanation-1: -Economics is the study of the production, distribution, and consumption of goods and services. 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?
Detailed explanation-2: -Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed?
Detailed explanation-3: -Consumers are people who buy or use goods and services to satisfy their wants.
Detailed explanation-4: -Consumers are free to buy the goods and services that best fill their wants and needs. Workers are free to (11) seek any jobs for which they are qualified. A market economy is driven by the motive of self-interest. Consumers have the motive of trying to get the greatest benefits from their budgets.
Detailed explanation-5: -The three basic decisions made by all economies are what to produce, how it is produced, and who consumes it.