Three Basic Economics Questions
***This is not a request for a written paper, but points to expound on.***
Write a 2-3 page thorough analysis of the three basic economic questions along with an analysis of the centralized command and control system, the price system, and the mixed economic system. Remember to cite your research and do not plagiarize.
... and other aspects are determined by market forces. For example, in a mixed economy the production of milk and other essential food items are influenced by the government. However, the quantity or the price of toothpaste is determined by the market forces.
The second basic economic question is "How to produce?". This question asks what combination of scarce resources will be used for making goods and services that the system has decided to produce. This question addresses the allocation of the factors of production. The combination of land, labor, capital, and technology, which will be used for producing goods and services must be determined by the economic system. For example, one economic system may use a labor intensive system of making goods. Another economic system may use capital intensive method of producing goods. From the perspective of individual businesses they have a choice, they may elect to produce all the goods and services they sell by themselves or they may outsource the production.
In a centralized command and control ...