Question

compre and contrast two of three economic systems. Consider how each system answers the questions of WHAT, HOW, and FOR WHOM? Which system works best and why ?

Answer 1

TRADITIONAL: Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services
MARKET: Choices controlled by exchange and trade, that are made by individuals, helps decide the productivity of the economic system
COMMAND: An economy with a central authority
- CENTRALLY PLANNED ECONOMY: Central government alone decides how to answer all three key economic key questions
MIXED: A market-based economy in which the government plays a limited role
-combines the characteristics of traditional and command economies

However, capitalism is usually deemed to be the best economic system as it focuses on the creation of wealth directly from individuals (not controlled by the government) and owning factors of production; whereas others focuses on the exchange of wealth, goods and services. (Investopedia)