Question

True of false: The three main decisions that must be addressed by an economic system include what goods are to be produced, who will produce them, and where they will be produced.

Answer 1

The three main decisions that an economic system must address are what goods are to be produced, who will produce them, and where they will be produced.

Step-by-step explanation:

The three main decisions that must be addressed by an economic system are:

1. What goods are to be produced? This question focuses on determining the resources a country has and how it will utilize them to produce goods. The answer to this question determines whether the economy is more command or market.
2. Who will produce them? In a market economy, businesses (firms) decide how goods and services are produced and hire labor accordingly. In a command economy, the government plays a larger role in directing production and setting wages.
3. Where will they be produced? This question pertains to the allocation of goods and services. In a market economy, it is largely determined by the consumers who can afford to purchase them. In a command economy, the government decides who receives the goods and services.