ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A Country must decide how to distribute its resources to meet the needs of its people. How a country makes these decisions determines its type of economic system. An Economic System is the way a society organizes the production, distribution, and consumption of goods and services.

Detailed explanation-2: -Not all economies are organized in the same way. The three major ways they can be organized are as a market economy, a command economy, or a mixed economy. In a market economy, consumers and businesses decide what they want to produce and purchase in the marketplace.

Detailed explanation-3: -Economic growth is driven oftentimes by consumer spending and business investment. Tax cuts and rebates are used to return money to consumers and boost spending. Deregulation relaxes the rules imposed on businesses and have been credited with creating growth but can lead to excessive risk-taking.

Detailed explanation-4: -Traditional, command and market oriented economies are simply the three different ways that social orders can arrange themselves economically.