Wednesday, September 22, 2010

How different economic systems answer the three basic economic questions

  1. The three basic economic questions that every day society has to answer is; What product will be produced,How will the product be produced and for whom will the product be produced?
  2. An economic system is a system of production and distribution and consumption. the four types of economic systems are :Market economy,Mixed econony,Commmand economy and Traditional economy(i.e.market economy is not run by the gov't,mixed economy is a mixture of all economies out together, command economy is controlled by the gov't, and traditional economies are based on customs and beliefs)
  3. Idint know the answer to this question/
  4.  The united states reflect a combination of the economic systems because the united states is a very the diverse country,with that being said that means that we have a mixed economy.
  5. The economic system that is used by the Inuit  is the Traditional economy because there custom is to take the child through these steps on order for them work .
  6. The  market,command and traditional economic systems compare and contrast with eachother in terms of profit motive
  7. One reason why i support Adam Smith's theory of laissez faire and the ''invisible hand'' in the market economy is because it forces people to think about what other people wants and one reason why i would oppose this theory