HOW DIFFERENT ECONOMIC SYSTEMS ANSWER THE THREE BASIC ECONOMIC QUESTIONS blog 3

The three basic economic questions that every society must answer are; What will it produce? How will it be produced? For whom would it be produced for?

An Economic system is the production, distribution, and consumptions of goods and services of the economy. The four types of economic systems are market,command, traditional, and mixed. In the traditional economies the three economic questions are decided mainly by social customs. In market economies, the economy is like capitalism in the U.S. and the economic questions are based upon individuals in the marketplace. In command economies it is decided by the government. In the mixed economy, they are decided by combination of market decision making and making government order.

The Inuit tribe in Alaska Teach their children that they must always do their best at every task. The child begins by observing the adults doing a task. I support Adam Smith theory because the governer shouldnt be involved with the consumers and sellers. command and traditional economics systems compare and contrast with each other in terms of profit motive, private ownership, consumer sovereignty, competition and government regulation because its like a free market between the economics system!