ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Who gets to produce goods and services, who gets to consume them, and who collects the profits?
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Why should goods and services be produced, when should they be produced, and how should they be produced?
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Where should goods and services be produced, who should sell them, and who should get the profits?
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What goods and services should be produced, how should they be produced, and who will consume them?
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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: -There are three main types of economies: free market, command, and mixed. The chart below compares free-market and command economies; mixed economies are a combination of the two. Individuals and businesses make their own economic decisions.
Detailed explanation-3: -An economic system is the method used by a society to produce and distribute goods and services. Several fundamental types of economic systems exist to answer the three questions of what, how, and for whom to produce: traditional, command, market, and mixed.
Detailed explanation-4: -The existence of scarcity creates the basic economic problem faced by every society, rich or poor: how to make the best use of limited productive resources to satisfy human needs and wants.
Detailed explanation-5: -The fundamental economic problem faced by all societies is Scarcity. The economic resources are insufficient to satisfy human wants and needs. Human wants are unlimited, but the means to satisfy human wants are limited. Scarcity affect the economic growth of the country.