There are three main types of economic systems: command, market, and mixed. 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. The government makes economic decisions for the good of society.

What are the basic questions of economics?

The four basic economic questions are (1) what goods and services and how much of each to produce, (2) how to produce, (3) for whom to produce, and (4) who owns and controls the factors of production. In a capitalist economy, the first question is answered by consumers as they spend their money.

Which is one of the basic questions of Economics?

The fundamental economic problem is one of scarcity. The basic questions of economics become: What to produce? How to produce? For whom to produce? When to produce? What to produce? Given limited resources of labour, raw materials and time, economic agents have to decide what to produce.

Which is the third basic decision of an economy?

Because the resources and the resulting output of goods are limited, the third basic economic decision, which must be taken, is ‘for whom to produce’. ‘For whom to produce’ means how the national product is to be distributed among the members of the society.

What are the three basic problems of Economics?

Basic economics problem including 1) problem of allocation of resources 2) problem of economics efficiency 3) problem of full employment of resources 4) problem of economics growth . And basic problem is 1) what to produce 2) how to produce 3) for whom to produce. What is basic problem 1st or 2nd

What are the answers to the three basic questions?

Market Economic System: A market (also called capitalist) economy is one in which answers to the three basic questions are the cumulative result of many individual decisions about what to buy and what to sell in the public marketplace. Buyers express their preference for certain goods and services, thereby influencing what is produced.