How do different economic systems allow societies to respond to questions about production, consumption and distribution?
Different economic systems allow societies to respond to questions about production, consumption, and distribution by seeing how society would react to a new product. If there's a positive reaction, more of the product would be produced. If there's a negative reaction, the production of the product would create less of the product.
In a market system, the supply and demand of a product determines what and how much of the product to produce. The method of production that costs the least has to be used in a market system to gain a profit off of the product. If the cost of production is too high and the price of the product is low, not much of a profit would be made. If the cost of production is high and the price for the product is too high, customers would be discouraged from buying the product and little profit would be made. Customers or people who are willing to buy the product determine the amount of product that would be produced and the price it would be in a market system.
Under a command system, the government determines what and how much of a product would be produced. The direct planning of the government based on the economy is called central planning. A command system doesn't depend on the public to decide the production, consumption, and distribution of a product but instead depends on the direct control and planning of the government based on the economy.
A capitalist system is where individuals own their own all resources (both human and non-human) through inheritance or industry. The government only intervenes a little to make sure that the property of private individuals is protected. To decide how much of a product will be produced, individual owners depend on the demand of their product. The availability of resources determines the supply and production of the product. To decide what product to sell, individuals will see what product sells the best and makes the best profit.
In a socialism economic system, individuals own their own products and the government owns most other non-human resources. Most of the major factors of production are owned by the state while land, factories, and major machinery are owned by individuals. The state sets the prices and production for products since a socialism system is a type of command system.
A communist economic system is a system where the state owns all resources (both human and non-human). Central planners help decide the production of a product by thinking about what would be best for the country. Central planning plays a large role in the economic system.
Under a mixed economic system, some elements of a command system and a market system are used. Different aspects of systems are used to answer the questions of production, consumption, and distribution. They also answer the question of what to sell to the public.
Economic systems depend on the society to find out what to sell to make the most profit. These systems use information gathered from society's wants and needs to try to make a product that would be bought many times. By doing this, economic systems ensure that only lucrative products are made and sold.
In a market system, the supply and demand of a product determines what and how much of the product to produce. The method of production that costs the least has to be used in a market system to gain a profit off of the product. If the cost of production is too high and the price of the product is low, not much of a profit would be made. If the cost of production is high and the price for the product is too high, customers would be discouraged from buying the product and little profit would be made. Customers or people who are willing to buy the product determine the amount of product that would be produced and the price it would be in a market system.
Under a command system, the government determines what and how much of a product would be produced. The direct planning of the government based on the economy is called central planning. A command system doesn't depend on the public to decide the production, consumption, and distribution of a product but instead depends on the direct control and planning of the government based on the economy.
A capitalist system is where individuals own their own all resources (both human and non-human) through inheritance or industry. The government only intervenes a little to make sure that the property of private individuals is protected. To decide how much of a product will be produced, individual owners depend on the demand of their product. The availability of resources determines the supply and production of the product. To decide what product to sell, individuals will see what product sells the best and makes the best profit.
In a socialism economic system, individuals own their own products and the government owns most other non-human resources. Most of the major factors of production are owned by the state while land, factories, and major machinery are owned by individuals. The state sets the prices and production for products since a socialism system is a type of command system.
A communist economic system is a system where the state owns all resources (both human and non-human). Central planners help decide the production of a product by thinking about what would be best for the country. Central planning plays a large role in the economic system.
Under a mixed economic system, some elements of a command system and a market system are used. Different aspects of systems are used to answer the questions of production, consumption, and distribution. They also answer the question of what to sell to the public.
Economic systems depend on the society to find out what to sell to make the most profit. These systems use information gathered from society's wants and needs to try to make a product that would be bought many times. By doing this, economic systems ensure that only lucrative products are made and sold.