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Interaction between producers and consumers
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What is production determined by individuals and private groups?
A market economy
What is a market economy based on?
A market economy is an economy in which decisions regarding investment, production and distribution are based on market determined supply and demand. Prices of goods and services are determined in a free priced system
How are the economic questions of what to produce and how to produce decided in a market economy such as the US?
All three of the basic economic questions, in a market economy is answered by the market: What to produce: This is determined by what is demanded and what can be supplied (with the resources) in an economy. How to produce: This is determined by the resource available although theoretically, it should produce at the bottom point in the average cost curve. To whom to produce: Although not stated in the question, this is still a fundamental question in an economy. In a market economy, this question is answered by the demand and supply: The good is produced for all those who is willing and able to buy that good at a given price (determined by the demand and supply.)
How did the command economy under Stalin differ from a capatalist economy?
A command economy is a system where the government controls economic activity and the production and distribution of goods. In a capitalist economy, such things are determined by market forces.
Is England an planned economy?
No, the UK is a Market economy. A market economy is one in which in which the prices of goods and services are determined by supply and demand.
What is production determined by individuals and private groups?
A market economy
What is a production determined by individuals and private groups?
A production determined by individuals and private groups is referred to as a market economy. In this system, decisions about production, consumption, and investment are guided by individuals and businesses operating in a competitive market environment rather than by government intervention.
What is a market economy based on?
A market economy is an economy in which decisions regarding investment, production and distribution are based on market determined supply and demand. Prices of goods and services are determined in a free priced system
How did the command economy under Stalin differ from a capatalist economy?
A command economy is a system where the government controls economic activity and the production and distribution of goods. In a capitalist economy, such things are determined by market forces.
How are the economic questions of what to produce and how to produce decided in a market economy such as the US?
All three of the basic economic questions, in a market economy is answered by the market: What to produce: This is determined by what is demanded and what can be supplied (with the resources) in an economy. How to produce: This is determined by the resource available although theoretically, it should produce at the bottom point in the average cost curve. To whom to produce: Although not stated in the question, this is still a fundamental question in an economy. In a market economy, this question is answered by the demand and supply: The good is produced for all those who is willing and able to buy that good at a given price (determined by the demand and supply.)
How can price be determined in a free market economy?
Price in a free market economy is determined by the interaction of supply and demand. When demand for a product exceeds supply, prices tend to rise. Conversely, when supply exceeds demand, prices tend to fall. This price mechanism helps allocate resources efficiently based on consumer preferences and production costs.
What is an economic system in which production of goods and services is determined by demand from consumers?
A market economy is an economic system in which the production of goods and services is determined by the demand from consumers. Prices are set by supply and demand in the market, and businesses respond to consumer preferences in order to maximize profit.
Is England an planned economy?
No, the UK is a Market economy. A market economy is one in which in which the prices of goods and services are determined by supply and demand.
How price are determined in a competitive market?
based on economy
What are the components of a free market economy?
A free market economy is a market based one. The prices of goods and services are determined independently in a free market.
How does each type of economy answer the three basic questions?
market economy
What is the difference between a free market and communist economy?
In a capitalist economy, production is determined by free market forces such as supply and demand. In a communist economy, the government determines which goods and services get produced and how much is available at any given time. Hope it helps!
