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The economic system in witch consumers control prices and production through supply and demand is called a?
Wiki User
∙ 12y ago
free market economy
Wiki User
∙ 12y ago
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What are the three problems of economic organization?
The market mechanism allows an economy to simultaneously solve the three economic problems of what, how, and for whom. Consumers indicate their preferences over what is produced through their willingness to pay for a good or service "The dollar votes" . Firms respond to this by considering the mix of final products that will maximize their own profits, that is, the difference between their revenues from sales and their production costs. This must involve the question how, since firm production costs are determined by the prices of inputs and technology used in the production process. Once these questions have been addressed, for whom is found to be those consumers who have the money to pay for the goods and services produced.The three problems of economic organization are for whom, how and what. Every type of economy is confronted by these problems.
How market solve the three economic problems?
The market mechanism allows an economy to simultaneously solve the three economic problems of what, how, and for whom. Consumers indicate their preferences over what is produced through their willingness to pay for a good or service "The dollar votes" . Firms respond to this by considering the mix of final products that will maximize their own profits, that is, the difference between their revenues from sales and their production costs. This must involve the question how, since firm production costs are determined by the prices of inputs and technology used in the production process. Once these questions have been addressed, for whom is found to be those consumers who have the money to pay for the goods and services produced.jay jay
How does the government control the economic system?
the government controls the economic system through banks taxes and other ways inwhich we may not think of.
What is the using of goods and services called?
Production is the creation of goods and services. It is used to help deliver what consumers need and want through consumption.
Describe the allocation of resources in market and mixed economic systems?
In a free market where the demand and supply of resources as return to factors are determined by market forces to determine the resource allocation usually owned by private Enterprise through price mechanism, although government control to some extent also determines the allocation of resources for auxiliary or subordinate production of goods and services in a mixed economic system by planning in the production possibilities by the scarce resource allocation .
How do consumers make their desires known to business?
consumers can make their desires known through their economic dealings with producers
What were the four methods of European colonial control?
Colony, protectorate, sphere of influence, and economic imperialism.
What is a capital as a factor of production?
Capital as a factor of production entails goods that are produced through human labor in an economic system. This does not include Natural Resources or land.
What were the four methods of european?
Economic control through mercantilism. political by passing and enforcing colonial laws, military control,and emotional control through family ties etc.
What is the difference between production control and process control?
Production control involves the systematic planing, co-ordinating and directing of manufacturing activities to ensure that good are made on time, of adequate quality and at reasonable cost. Process control on the other hand, is the production of materials through the use of ICT systems. An example of process control is paper production. Gabriel.
What are the three problems of economic organization?
The market mechanism allows an economy to simultaneously solve the three economic problems of what, how, and for whom. Consumers indicate their preferences over what is produced through their willingness to pay for a good or service "The dollar votes" . Firms respond to this by considering the mix of final products that will maximize their own profits, that is, the difference between their revenues from sales and their production costs. This must involve the question how, since firm production costs are determined by the prices of inputs and technology used in the production process. Once these questions have been addressed, for whom is found to be those consumers who have the money to pay for the goods and services produced.The three problems of economic organization are for whom, how and what. Every type of economy is confronted by these problems.
What were the four methods of European colonial?
Economic control through mercantilism. political by passing and enforcing colonial laws, military control,and emotional control through family ties etc.
How does income get from businesses to consumers?
The transfer and redistribution of capital happens through multiple mechanisms and directional flows. Transfers of income from businesses to consumers can occur through the economic redistribution from taxation. Businesses can also sell to consumers who in-turn resell. Businesses also have what is known as a 'trickle down effect' where their income is paid out to workers, who are also consumers themselves.
How market solve the three economic problems?
The market mechanism allows an economy to simultaneously solve the three economic problems of what, how, and for whom. Consumers indicate their preferences over what is produced through their willingness to pay for a good or service "The dollar votes" . Firms respond to this by considering the mix of final products that will maximize their own profits, that is, the difference between their revenues from sales and their production costs. This must involve the question how, since firm production costs are determined by the prices of inputs and technology used in the production process. Once these questions have been addressed, for whom is found to be those consumers who have the money to pay for the goods and services produced.jay jay
How does the government control the economic system?
the government controls the economic system through banks taxes and other ways inwhich we may not think of.
How was ww3 avoided?
Has it been avoided? Remember that economic downfall in most cases have led to recovery through arms production!
What is it called when a nation controls itself and others?
This is known as imperialism, where a nation extends its power and influence over other nations, often through military force, economic dominance, or cultural influence. Imperialism can involve direct control, such as through colonization, or indirect control through political, economic, or cultural means.
