Answer to Question #171289 in Economics for iugdwe

Question

Economic Systems essay

the 3 Economic question

1.what to produce (what kind of good and services should be produced

2.how to produce(what productive resources are used to produce goods and services?)

3.For whom to produce?(who gets to have the goods and services?

compare and contrast the ways in which traditional,market and command economies answer the three major economic question

Answer 1

In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.