Final answer:
Societies must answer three basic economic questions regarding production and distribution amidst resource allocation and scarcity. They resolve who gets what through market, command, mixed, or traditional economic systems.
Step-by-step explanation:
In economics, every society must address three fundamental questions: What should we produce? How should we produce it?, and For whom should we produce it?. These questions help societies navigate resource allocation and scarcity. Let's look at the four ways that societies decide who should get what:
- Market economy: In a market economy, distribution is largely determined by purchasing power and consumer demand. Those who can afford goods and services obtain them.
- Command economy: Here, the government decides distribution, often aiming to achieve a perceived social equilibrium or meet political objectives.
- Mixed economy: This integrates aspects of market and command economies, balancing individual choice with government involvement.
- Traditional economy: Distribution is typically driven by customs, beliefs, and traditions, with goods and services allocated according to long-established societal roles.