The Three Basic Economic Questions

The Three Basic Economic Questions
1. What to Produce?
what items to produce and how much of each item to produce using its productive inputs in the most efficient manner. 2. How to Produce?One the decision has been made regarding what to produce. each country must choose which resources productive inputs will be used and in what combinations
3. For Whom to Produce?
Should the productive outputs be distributed based on social customs, personal wealth and ownership, or mandated by the government? mandated government- china no youtube or facebook (social customs- north korea the worst)
Basic Economic Systems
Traditional Economy
One in which economic decisions depend upon social customs and rarely changes from generations to generation. in these societies, religion and culture are more important than personal wealth and material possessions. ( north korea, india marriage) conncected to for whom to produce in tradition
Market Economy
One in which economic decisions are based on private ownership, where individuals are free to pursue their own self interest. This system is often referred to as capitalism. individuals use their incomes to purchase goods and services. The more income one earns, the more purchasing power they have.
Command Economy
One in which all productive inputs are owned by the government and central planners within that government decide what items to produce and how much will be produced; how it will be produced and how output will be distributed based upon anticipated future needs of the economy. ex. China majority Africa
Mixed Economy
One that combines aspects of a market economy and a command econmy; the economy uses both markets and government to make decisions. Most countires today fall under the mixed eonomly definition, however in varying degrees between private and public sector influence ex. Sweden, Canada, USA Economic SystemAdvantages
Disadvantages
Traditional Stability
Emphasizes on spiritual and cultural aspects of lifePoverty Lack of individual freedoms
Market Individual consumers determine what is produced and ultimately how much they are willing to pay.
Encourages innovation and entrepreneurshipInstability in output due to changes in prices and/ or employment levels Private markets do not always consider the needs of society as a whole e.g. homeless shelters. If income is distributed based solely on earnings, some individuals might not earn enough to obtain the basic necessities of life. CommandMore even distribution of income
Central planners can focus on economic growth by directing resources in a specific direction.Lack of individual freedoms
Central planning difficulties and errors in judgment
Inefficient use of resources due to the lack of profit to motivate the efficient use of resources
Approximate price: $22
We value our customers and so we ensure that what we do is 100% original..

With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.