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Economic decisions are made differently in different economic systems… a. What are the basic economic decisions that every economic system must make? b. List the three basic economic systems. How does each answer the basic economic questions? c. List and explain four (4) characteristics of the market economy.

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Answer:

Step-by-step explanation:

The basic economic decisions are; what to produce? 2. How to produce? 3. Whom to produce?

Three economic systems are;

1. Free market

2. Command economy

3. Mixed economy.

In free market economy system; the products which are profitable, produced, production method is finalized by an entrepreneur. 3. the people who can afford to pay.

in command economy ; govt decides all three questions .

while in mixed economy both govt. and pvt .sector decides.

Characteristics of market economy;

1. Profit motive

2. variety of goods and services

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