| A | B |
|---|
| What are the three basic economic questions? | What to produce? How to produce goods and services? Who gets these goods and services? |
| What to produce? | The decision regarding what goods and services an economy should produce to meet the needs and wants of its population. |
| How to produce goods and services? | The methods and processes used to create goods and services, considering factors like labor, technology, and resource availability. |
| Who gets these goods and services? | The distribution of goods and services among individuals or groups based on factors like income, need, or government policies. |
| Command Economy | An economy in which production, investment, prices, and incomes are determined centrally by the government. |
| Give an Example of a Command Economy | North Korea's economy is heavily controlled by its government. |
| Market Economy | An economic system in which production and prices are determined by unrestricted competition between privately owned businesses. |
| Give an Example of a Market-Driven Economy; | The United States has a primarily market-driven economy. |
| Mixed Economy | An economic system combining private and public enterprises. |
| Give an Example of a Mixed Economy | Many European countries, like Sweden, combine free markets with government-provided healthcare. |
