Sunday, August 29, 2010

How different economic systems anser the three basic economic questions

standard SSEF4





  • a economic system is a system of production and distribution and consumption. The four types of economic systems are mixed economy- The USA& Japan, traditional economy- Amazon tribes, Market economy- the And Japan, and Command economy- Cuba and China.

  • Traditional economy characterises production largely for localised consumption within a family or a small area like a village with very little use of money and largely barter exchange of commodities. As against this the market economy is characterised by production largely for sale in the market, free trade and market mechanism through which production, distribution and prices are set with Govt. playing virtually no role in the economic decisions of the citizens either individually or collectively. In contrast to this in a command economy the level and basket of both production, consumption of different goods and services as well as their prices and the incomes of the citizens are decided by the State./ govt. and its agencies and very little economic decision making is allowed to individuals A mixed economy is any sort of mixture of both market economy and command economy.

  • The inuit tribe in Alaska Goes by a traditional economy. The eason they go by this economy is
     because they relie on customs and rituals to make choices.

5&6 i dont fully understand.  can i recieve a little help when i stay for tutorial on tusday please!!!!

2 comments:

  1. Thanks Krishna,
    I'll work with you on this post Monday or Wednesday. We have staff meetings on Tuesday.

    ReplyDelete
  2. Do not see where corrections were made to this blog...

    ReplyDelete