Econ-3.2 Formative Assessments- Option 1

Which Economic System aswers the 3 Basic Economic Questions in the following ways?

• 1. What Goods and Services will be Produced?

  • Answer: Whatever Goods and Services the central government says should be produced.

• 2. How should the Goods and Services be Produced?

  • Answer: Whichever way the central government says the goods and services should be produced – Usually in a way that employs the most amount of people

• 3. Who Consumes the Goods and Services?

  • Answer: In the way the central government decides the goods and services should be rationed – The government usually sets prices that cannot be changed

Which Economic System aswers the 3 Basic Economic Questions in the following ways?

• 1. What Goods and Services will be Produced?

  • Answer: Whichever goods & services that consumers want/need that will bring in profit to the producers that are deemed safe by government

  • 2. How should the Goods and Services be Produced?

    • Answer: With the combination of Scarce Resources that are the most efficient and cost effective for producers that also follows all government regulations on the production process

  • 3. Who Consumes the Goods and Services?

    • Answer: The consumers who are willing and able to pay for the goods and services based on the market price.  Government can also set price controls to limit how high or low the price of a specific good or service can go.

Which Economic System aswers the 3 Basic Economic Questions in the following ways?

• 1. What Goods and Services will be Produced?

  • Answer: Whichever goods & services that consumers want/need that will bring in profit to the producers

  • 2. How should the Goods and Services be Produced?

    • Answer: With the combination of Scarce Resources that are the most efficient and cost effective for producers

  • 3. Who Consumes the Goods and Services?

    • Answer: The consumers who are willing and able to pay for the goods and services based on the market price

Which Economic System aswers the 3 Basic Economic Questions in the following ways?

• 1. What Goods and Services will be Produced?

  • Answer: Whatever Goods and Services have always been produced – Usually Agricultural Goods

  • 2. How should the Goods and Services be Produced?

    • Answer: How the goods and services have always been produced – Usually with a large amount of labor and a little physical capital and technology

  • 3. Who Consumes the Goods and Services?

    • Answer: The goods and services will be rationed by how they have always been rationed – Usually, people will consume what they produce with very little left over