ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What to produce, how to produce it, and for whom to produce the goods
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When to produce, why to produce, and how long to produce
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to what extent to produce, how much to produce, why to produce
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what to produce, why to produce, and how much 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: -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?
Detailed explanation-3: -The three basic decisions made by all economies are what to produce, how it is produced, and who consumes it. Scarce resources have a variety of possible uses (such as natural materials or labor), and economies must determine what those raw resources should be used for.
Detailed explanation-4: -There are three main types of economic systems: command, market, and mixed. We will briefly describe each of these three types.
Detailed explanation-5: -What to produce? ➢ What should be produced in a world with limited resources? How to produce? ➢ What resources should be used? Who consumes what is produced? ➢ Who acquires the product?