Economics: Answering the Three Economic Questions

Factor payments

When people earn income for supplying land, labor, capital, or entrepreneurship, they receive ...

Market economy

When voluntary exchanges in the market determine decisions on production and consumption, the society's economic system is a ...

Centrally planned economy

An economic system in which the central government makes all decisions on production and consumption of goods and services is a ...

Traditional economy

An economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services is a ...

Scarcity (resources are limited)

Economic concept necessitating choices and priorities in any society

Who consumes which goods and services?

Economic question answered by basics social values and goals

Economic system

Encyclopedia entry illustrating how a hunter-gatherer group collects in shares food resources is describing that society's ...

Safety net

People who receive disaster relief from the government after a flood are benefiting from an economic system that provides a ...

(A) efficiency (B) freedom (C) security and predictability (D) equity (E) growth and innovation

The five basic economic goals guiding society's choice of systems

(A) traditional (B) market (C) centrally planned (D) mixed

The four main kinds of economies

(A) What goods and services should be produced? (B) How should these goods and services be produced? (C) Who consumes these goods and services?

The three economic questions