Because of scarcity every society or economic system must answer these three (3) basic questions:

• What to produce? ➢ What should be produced in a world with limited resources?
• How to produce? ➢ What resources should be used?
• Who consumes what is produced? ➢ Who acquires the product?

  In which economic system are the answers to the basic economic questions determined by individuals?

  Capitalism-individuals own the factors of production and answer the basic economic questions.

  What are two different types of economies?

  The two major economic systems in modern societies are capitalism and socialism. In practice most societies have economies that mix elements of both systems but that lean toward one end of the capitalism–socialism continuum.

  How do economic systems answer the three basic questions?

  There are 3 basic types of economic systems that have to answer three basic questions: What to produce? How to produce? For whom to produce? What to produce? What kinds of goods and services should be produced?

  What are the different types of economic systems?

  The term economic system refers to the way in which a society organizes the production and distribution of good and services. The system that a society chooses reflects the philosophical and political ideas on which that society is founded. Historically, there have been three basic types of economic system: traditional, command, and market.

  How are economic decisions based on customs and beliefs?

  An economic system in which economic decisions are based on customs and beliefs. People will make what they always made & will do the same work their parents did. Exchange of goods is done through bartering. Traditional Ecomony Bartering means…

  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.