Question

The three fundamental economic questions are: to produce to produce to produce 1. 2. Fill in the correct type of economic system next to each description of how the three economic questions are answered: traditional, command, or market as decided by a dictator or central authority as necessary for businesses to sell products to the public for a profit the way they have always been answered (according to customs)

Answer 1

1. The three fundamental economic questions are:

What to produce?

How to produce?

For whom to produce?

Explanation:

What to produce?

The economy has to decide whether to produce consumer goods or capital goods. The problem of what to produce arises due to alternative use of resources.

How to produce?

This deals with the choice of technique of production. (Whether to use Labour Intensive Technique or Capital Intensive Technique)

For whom to produce?

This is related to the distribution of goods and services.

2. Command - as decided by a dictator or central authority

Market - as necessary for businesses to sell products to the public for a profit

Traditional - the way they have always been answered (according to customs)

Explanation:

Command Economy - An economic system in which the government controls a country's Economy (Central Planning Authority)

Market Economy – This economy relies on market forces (Demand and Supply)

Traditional Economy – Relies on habit, custom, or ritual.