Three basic economics questions along with the emphasis of the two opposing sets of answers
Concept Introduction:
In every nation, three fundamental questions must be addressed irrespective of the form of its government or who heads that government, how rich or how poor the nation may be, or what type of economic system —the institutional mechanism through which resources are utilized to satisfy human wants—has been chosen. These are:
- What and how much will be produced?
- How will items be produced?
- For whom will items be produced?
The two opposing sets of answers discuss how a nation’s residents go about answering the three basic economic questions. The two opposing answers to these questions are provided by the type of economic system: either centralized command and control or the price system
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Chapter 1 Solutions
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