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What is an economic system in which production of goods and services is determined by demand from consumers?
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∙ 12y ago
Emily p
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∙ 12y ago
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Which of the following is the best description of an economy?
An economy refers to the system of production, distribution, and consumption of goods and services in a region or country. It involves factors such as resources, market demand, government policies, and economic agents like consumers, businesses, and governments. The economy can be classified based on characteristics like market structure, level of development, and economic activities.
What is the definition of producer in social studies?
In social studies, a producer is an individual or organization that creates goods or services to satisfy the demands of consumers in the market. Producers play a critical role in the economy by utilizing resources to produce goods and services for consumption or further production.
What do households provide or supply?
Households provide labor, income, and consumption of goods and services. They are fundamental units of consumption and production in an economy, contributing to economic growth through their spending and participation in the workforce.
Nations standard of living determined by productivity?
A nation's standard of living is closely linked to its productivity levels. Higher productivity means more output can be produced with the same resources, leading to increased income and wealth for individuals. This can result in better living standards, including more goods and services, higher wages, and overall economic prosperity.
Why is it a problem when private and social costs diverge?
When private and social costs diverge, resources are not allocated efficiently because the true costs of production or consumption are not fully accounted for. This can lead to overproduction or overconsumption of goods or services, causing negative effects on society such as pollution, resource depletion, or social inequality. It can also undermine the effectiveness of market mechanisms in promoting optimal outcomes for both producers and consumers.
An economic activity that provides services to businesses and consumers?
Democracy
Consumer what is the condition under which all economic processes are ultimately focused upon for satisfying the wants and needs of consumers?
Consumer sovereignty is where their preferences determine the production of goods and services. Normally consumers do not determine what they get, the get what is offered by the seller.
What do you call an economic activity that has to do with the creation of good and services?
Production
How is Jamaica's economic system similar to the US economic system?
Jamaica is a capitalist country. The government does not attempt to control the farms or factories and consumers have a choice of goods and services.
Which of these represents a market economic system?
By buying or not buying goods and services, consumers provide answers to the basic economic questions
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
What does economic do with resources when it comes to the production and distribution of goods and services?
Allocating
What are the four economic questions?
-What should the economy produce? Market economies use price to answer this question. For example, Product X at a very high price may not sell, thus producers may stop making the product. -How should goods/services be produced? Producers combine resources (consumers sell factors of production) to make products they can sell. Price of factors of production influence producer decisions to make or not to make a product -Who should receive the goods/services produced? Incomes limit choices and decisions of consumers as they respond to price in the marketplace. Consumers earn incomes based on their contributions (factors of production) to production of goods/services. -How should the economy provide for growth? Producers increase the supply of goods and services in response to price in the marketplace. Consumers earn increased incomes as they respond (offer their labor or capital) to the price of factors of production.
What is economic mode?
A state of equilibrium in the production of goods and services within the economic parameters in consumption,investments,savings and the forces of supply and demand for production.
What is economic theory another name for?
An economic theory is a theory that has to do with the production, distribution and consumption of goods and services.
Definition of economic institution?
An economic institution is the set of norms relating to production and distribution of goods and services
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.
