WHAT ARE THE THREE QUESTIONS THAT ALL ECONOMIC SYSTEMS MUST ANSWER

98. - TEST BANK FOR BUSINESS A CHANGING WORLD 5TH CANADIAN EDITION BY FERRELL
TEST BANK FOR BUSINESS A CHANGING WORLD 5TH CANADIAN EDITION BY FERRELL
98. What are the three questions that all economic systems must answer? Who answers them under a communist system? A socialist system? A capitalist system?

Explanation:

Answers will varyFeedback: The three economic questions are (1) What goods and services and how much of each, will satisfy the needs of the consumer? (2) How will goods and services be produced, who will produce them and with what resources will they be produced? (3) How are the goods and services to be distributed to the consumer? Under a true communist system, these questions are answered by a central government planning committee. Under a true socialist system, central planning answers the questions for basic goods and industries, while the forces of supply and demand answer them for most other products. Within a capitalist system, competition, supply, and demand determine the answers. Bloom's: AnalysisDifficulty: HardLearning Objective: 01-03 Define economics and compare the four types Essay Question of economic systems.