ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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by the decisions it makes about who consumes goods and services
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by the resources it uses to produce goods and services
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by the trade-offs it accepts in order to produce goods and services
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by how it answers the three basic economic questions
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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?
Detailed explanation-2: -Economic Systems. The way in which a society answers the three fundamental economic questions is called an economic system. More formally, an economics system is a process or mechanism for answering the three fundamental questions.
Detailed explanation-3: -An economic system is a system of production, resource allocation, exchange and distribution of goods and services in a society or a given geographic area.
Detailed explanation-4: -Solutions to the basic problems under a socialist system The basic problems of an economy can be solved either by the decisions of the Government or by the Market through interactions of buyers and sellers.
Detailed explanation-5: -The government answers the three key economic questions. Karl Marx advocated a centrally planned economy.