ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economics is the study of the production, distribution, and consumption of goods and services. 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?

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: -A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country’s individual citizens and businesses.

Detailed explanation-4: -In a pure command economy, the basic economic questions are answered by the government, which owns the productive resources and handles distribution of goods and services.