How do economic systems answer the three basic questions: What to produce, how to produce, and for whom to produce?
Answer (1)
Traditional economies rely on customs. In a farming tribe, elders decide based on traditions.Command economies use government control. North Korea produces what the state wants.Market economies let individuals and businesses decide based on prices and competition, like in the U.S.In the Philippines, we mix these systems: farmers follow tradition, some industries are government-controlled, but most businesses operate freely. The goal is to balance fairness with efficiency.
