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PilotLPTM [1.2K]
3 years ago
8

What is the function of an economic system?

English
1 answer:
Ksenya-84 [330]3 years ago
4 0

The function of an economic system is to provide for production, allocation, distribution and regeneration of resources.

The economic system has to perform the function of deciding what goods and services should be produced, how or in which manner they should be produced, how much and for whom the production should be done. The allocation of products and services refers to consumption ( for present use ) and investment ( for future use).

The four different types of economic systems are: traditional, command, market and mixed.

Any economic system must achieve the best use of its scarce resources and try to reach maximal employment and high economic growth.

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