ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What to produce, why to produce, when to produce?
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What is your opportunity cost, what economic resources are needed, why should these resources be used?
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What to produce, how to produce, and for whom to produce?
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What is your opportunity cost, why are economic resources needed, when should these resources be used?
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Detailed explanation-1: -What should we produce? How should we produce it? For whom should we produce it?
Detailed explanation-2: -Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed? There are two extremes of how these questions get answered.
Detailed explanation-3: -In a command economy, what goods and services are produced, how they are produced, and for whom they are produced are all questions answered by government planning.
Detailed explanation-4: -The government answers the three key economic questions. Karl Marx advocated a centrally planned economy.
Detailed explanation-5: -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. The state’s central government makes all of the country’s economic decisions.