Answer to Question #101528 in Economics of Enterprise for Jaama hassan

Question

Define ecomomy 2 types of economy institution 3 functions economy institution 4 importance economy imstitution 5 Describtion and types of somali economy

Answer 1

1.Economy is the term used for the production and consumption activities that take place in a nation seeking to efficiently allocate the nation’s resources for the public benefit.

2. Private property, free markets, competition, division and combination of labor, and social cooperation.

3. Establishing and protecting property rights; facilitating transactions; and, permitting economic co-operation and organization

4. They make sure that resources are properly allocated, and ensure that the poor or those with fewer economic resources are protected. They also encourage trust by providing policing and justice systems which adhere to a common set of laws.

5. Somalia maintains an informal economy largely based on, agriculture, livestock, remittance/money transfer companies, and telecommunications. Somalia's government lacks the ability to collect domestic revenue and external debt.