ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the basic economic questions can be answered
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resources can no longer be produced
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government can take over the society’s economy
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laissez faire economics can begin
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Detailed explanation-1: -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-2: -In a market economy, resources are owned by private individuals. The goods and services that are produced are not determined by the government. Rather, production is determined by businesses responding to the wants and desires of consumers.
Detailed explanation-3: -Answer and Explanation: c. Where to produce? is not one of the primary economic questions. The basic economic questions ensure that scarce resources are used well.
Detailed explanation-4: -In a traditional economy, the answer to all questions is “What has always been done.” In a command economy the government or other central authority answers all of the questions. A mixed economy is a combination.