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What are the 3 economic decisions?

Last Updated: 29th February, 2020

There are three types of basiceconomicsystems: traditional, command, and market. In atraditionaleconomic system, economic decisions aremade based ona society's customs, culture, and way of life.Hunting, farming,and making things by hand are the methods used tomeet the people'sneeds.

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Accordingly, what are the 3 key economic decisions?

Several fundamental types ofeconomicsystems exist to answer the three questionsof what, how,and for whom to produce: traditional, command, market,and mixed.Traditional Economies: In a traditionaleconomy,economic decisions are based on custom andhistoricalprecedent.

Secondly, how does a market economy answer the 3 basic economic questions? 1) Whatgoods andservices should be produced? 2) How shouldthe goodsand services be produced? 3) For whom shouldthegoods and services be produced?

Besides, what are economic decisions?

Economic decisions are those decisionsinwhich people (or families or countries) have to choose what todoin a condition of scarcity. Scarcity occurs because peoplehaveunlimited wants but only have limited resources with whichtofulfill these wants. An individual person has to makeeconomicdecisions.

What are the major characteristics of the three types of economic systems?

An economy is a system whereby goodsareproduced and exchanged. Without a viable economy, astatewill collapse. There are three main types of economies:freemarket, command, and mixed. The chart below comparesfree-marketand command economies; mixed economies areacombination of the two.

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