Answer to Question #242302 in Macroeconomics for varoujan02

Question

How do market, planned, and mixed economies make the three basic economic decisions?

Answer 1

Mixed economy

What to produce. It is determined by consumer preferences and somehow by the government

How to produce. Determined by producers seeking to make profits and also by the government.

For whom to produce. This decision is determined by the purchasing power and by the government preference.

Planned economy

What to produce. It is determined by the government preference.

How to produce. Determined by the government and their employees.

For whom to produce. It is determined by the government preferences.