Table of Contents
How does a traditional economy answer what to produce to produce for whom to produce?
Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it. In a centrally planned economy the central government makes all decisions about the production and consumption of goods and services.
How does a command economy answer the economic question what to produce?
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. So government owned the land, government owned the businesses, and government even told people what their occupations would be.
What 3 economic questions are asked when studying the similarities of a traditional command and market economy among nations of the world?
Q. What 3 economic questions are asked when studying the similarities of a traditional, command, and market economy among nations of the world? What to produce, why to produce, when to produce? What is your opportunity cost, what economic resources are needed, why should these resources be used?
How do traditional economies decide what to produce?
How do command economies produce?
In a command economy, the government controls major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public. The government decides it must produce more guns, tanks, and missiles and train its military.
How are traditional and command economies the same?
Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them. They use barter instead of money. A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production.
How does a command economy answer the three economic questions?
Key terms. In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
How does a command economy answer the three basic economic questions?
In a Centrally planned economy, also known as a command economy, the central government controls the factors of production and answers the three basic economic questions for all of society.
What is produced in a traditional economy?
In this type of economic system, what is produced is based on custom and the habit of how such decisions were made in the past. The methods of production are primitive. The primary group for whom goods and services are produced in a traditional economy is the tribe or family group.