Answer to Question #258235 in Economics for Lamidi

Question

You are to type thirty objective and five theory question from waec past question on the (1):the definition,basic concept and problem and scope of economics.(2):economic system,free market economy,command economy and the mixed economy system.

Answer 1

1) The economy is a system that covers the production, sale, distribution of goods and services.

The main problem of the economy is the limited resources available to us.

Functions of economic theory:

cognitive - reveals new principles and methods in the development of science;

practical - develops existing approaches to managing the economy, is looking for solutions to important problems;

predictive - creates various models for the development of the state or a separate economic entity;

worldview - in the process of studying the economy, a person learns new facets of the world around him, the laws of processes;

methodological - reflects the ability of science to create new concepts and theories;

ideological - forms a model of worldview in the process of studying science;

critical - questions any phenomena to create new theories;

theoretical - science is constantly evolving to search for new directions.

2) Traditional type of economy

The oldest type of economy in the world is the traditional economy, according to which many countries still operate. These are mainly countries of the second and third world, in which agriculture is well developed. With this type of economic system, the country rarely has a surplus, that is, the country spends more than it receives. Society often lacks access to modern technology and medicine.

Team type of economy

The command economic system is also called centralized. This economy was the foundation for communist philosophy. Centralized power controls a significant part of the economic system, that is, most of the management decisions are made by the central government. For example, as it was in the USSR.

Market type of economy

The market economy is also called free since under it firms and households act in their own interests. This type of economy is the opposite of a command economy, where the central government makes a profit.

In a pure market economy, there is no government intervention, the government is separate from the market. In fact, this is not always the case: there is no truly free market economy in the world.

Mixed economy

A mixed economy is a combination of different types of economic systems, or rather, market and commands economies. Most often, the market is free of state ownership, except for several key industries: transport, defense, and railways.