Economy Help?
Ok so i have an assignment to compare traditional, market and command economies. I have to find an article that shows different ways to conduct and economic transaction and describe the differences...i dont understand what an economic transaction is and i cant find an article. help please
Answer:
OK J - here is the easiest way - How do you answer the following simple questions: 1) Who decides what to produce? 2) Who decides how and where produces are produced? and most importantly 3) Who are the consumers? Got that -- if so, lets answer these for a market economy - #1 - The market decides what is produced by what the individuals will buy - example of this is how many companies are producing VCRs and Tapes? very few because the people do not buy them anymore. #2 - the producers can decide where and how they produce their produce and #3 - the individual or households are the consumers. In a command economy the central government is the answer to all three questions. The Traditional economy is a little harder -- the questions are answered by traditional roles, available resources and are often a non-cash based system
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Answer:
OK J - here is the easiest way - How do you answer the following simple questions: 1) Who decides what to produce? 2) Who decides how and where produces are produced? and most importantly 3) Who are the consumers? Got that -- if so, lets answer these for a market economy - #1 - The market decides what is produced by what the individuals will buy - example of this is how many companies are producing VCRs and Tapes? very few because the people do not buy them anymore. #2 - the producers can decide where and how they produce their produce and #3 - the individual or households are the consumers. In a command economy the central government is the answer to all three questions. The Traditional economy is a little harder -- the questions are answered by traditional roles, available resources and are often a non-cash based system
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