One of the three main questions of economics addresses who should: produce goods and services.
In order to meet the needs of its people, every society must answer three basic economic questions: What should we produce? How should we produce it? For whom should we produce it?
Answering the Three Economic Questions
The three basic economic questions societies ask are: (1) What to produce? (2) How to produce? (3) Who to produce for?
The role of the three questions of economics helps organizations and businesses determine how best to use the resources available to them.
The consideration that must be addressed when deciding for whom to produce is to determine who needs the goods and services that are to be produced.
Individual producers and consumers provide the answers to the 3 basic economic questions. In a market economy who answers the 3 basic economic questions? Individual producers and consumers. Relies on profit motive, economic competition and supply/demand forces.
How are they answered in a capitalist economy? … In a capitalist economy, the first question is answered by consumers as they spend their money. The second question is answered by producers as they compete for sales and profits. The third question is answered by those who have the money to buy the product.
Three basic questions must be answered: a) What goods and services must be produced? b) How will these goods and services be produced? c) Who uses the goods and services that are produced?
There are three main types of economies: free market, command, and mixed. The chart below compares free-market and command economies; mixed economies are a combination of the two. Individuals and businesses make their own economic decisions. The state’s central government makes all of the country’s economic decisions.
One of the three main questions of economics addresses who should: produce goods and services. market goods and services. receive goods and services.
THREE QUESTIONS OF ALLOCATION: The three basic questions that an economy must answer because of limited resources and unlimited wants and needs are: What? How? and For Whom? The basic problem of scarcity requires every society to determine: What goods to produce?
The factors of production in an economy are its labor, capital, and natural resources. Labor is the human effort that can be applied to the production of goods and services. People who are employed—or are available to be—are considered part of the labor available to the economy.
regulatory agency, independent governmental body established by legislative act in order to set standards in a specific field of activity, or operations, in the private sector of the economy and then to enforce those standards. Regulatory agencies function outside direct executive supervision.
What is regulation in an economic system? Regulation is the placing of limits or restrictions on business activity by the government.
In a command economy, who answers the three fundamental economic questions? The government.
Brieflydiscuss the differences in how centrally planned, market and mixed economiesanswer these questions. The three economic questions that every society must answer are What goods andservices will be produced, How will the goods and services be produced and Who willreceive the goods and services produced.
The government answers all 3. Who answer the Three Basic Questions in Mixed? Everyone or government.
In command economies, the government controls the factors of production and answers the 3 economic questions of what, how and for whom to produce for all of society. Command economies often associated with socialism, communism and authoritarianism.
In standard textbook treatments, the economic problem of production and distribution is summarized by three questions that all economic systems must answer: what goods and services are to be produced, how goods and services are to be produced and distributed, and for whom the goods and services are to be produced and …
|Traditional Economy||Mixed Economy|
|Who decides how the goods and services will be produced?|
|Who decides who should share in the use of the goods and services?|
|Who owns the factors of production?|
|Advantages of this type of system?||1.||1.|
In a command economy, what goods and services are produced, how they are produced, and for whom they are produced are all questions answered by government planning. The government makes economic decisions for the good of society.
In a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed.
That chart showed that they would be able to produce around 50 potted plants on day 3.
Economic indicators are information and data used to analyze and interpret investment possibilities and to judge the overall health of an economy. The indicators used by economists reveal the following about the economy: changes in production and demand, changes in employment levels and changes in prices.
The goal of a command economy is for governments – not private enterprises – to manage country economies. In a command economy (also known as a planned economy), government central planners determine what goods and services will be produced, the amount of goods and services produced, and at what cost to the consumer.
As we show throughout this book, the maximizing behavior of individuals and firms determines society’s three main allocation decisions: which goods are produced, how they are produced, and who gets them.
The correct answer is d. the resources consumed in production. The value of an item is often depicted by its price in the market.
4 Key Resources – The four basic kinds of resources used to produce goods and services: land or natural resources, labor or human resources, capital, and entrepreneurship.
The U.S. government has set many business regulations in place to protect employees’ rights, protect the environment and hold corporations accountable for the amount of power they have in a very business-driven society.
Three main approaches to regulation are “command and control,” performance-based, and management-based. Each approach has strengths and weaknesses.
By restricting the inputs—capital, labor, technology, and more—that can be used in the production process, regulation shapes the economy and, by extension, living standards today and in the future. … Executed poorly, regulation can stifle creativity and learning and limit opportunities for all citizens.
one of the main questions of economics involves deciding upon the method for
resources needed to provide goods or services are called
the questions of economics address which of the following? choose three answers.
which of the following will be accomplished by efficient allocations of the factors of production?
which of the following best illustrates deciding how to produce a specific product?
if a specific economy has extra capital resources available, it will
which of the following is an example of a capital resource?
which of the following is an example of a labor resource?