How does the government decide what to produce?

How does the government decide what to produce?

In a command economy, the government controls major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public. The government decides it must produce more guns, tanks, and missiles and train its military.

What is the process in which a government dictates which goods or services are produced how they are produced and who will receive them?

Central planning by the government dictates which goods or services are produced, how they are produced, and who will receive them. In practice, pure communism is practically nonexistent today, and only a few countries (notably North Korea and Cuba) operate under rigid, centrally planned economic systems.

Who decides what to produce in a free economy?

In a free market economy, resources are allocated through the interaction of free and self-directed market forces. This means that what to produce is determined consumers, how to produce is determined by producers, and who gets the products depends upon the purchasing power of consumers.

What does a society use to determine what to produce?

An economic system is the method used by a society to produce and distribute goods and services. Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it.

Who decides how the goods and services will be produced?

The government decides what goods and services will be produced and what prices will be charged for them. The government decides what methods of production will be used and how much workers will be paid.

Who decides how the goods and services will be produced in a traditional economy?

The primary group for whom goods and services are produced in a traditional economy is the tribe or family group. In a command economy, the central government decides what goods and services will be produced, what wages will be paid to workers, what jobs the workers do, as well as the prices of goods.

What produce to produce and whom to produce?

(3) For whom to produce. ADVERTISEMENTS: In nutshell, an economy has to allocate its resources and choose from different potential bundles of goods (What to produce), select from different techniques of production (How to produce), and decide in the end, who will consume the goods (For whom to produce).

What produce to produce for whom to produce market economy?

In a market economy, the wants of the consumers and the profit motive of the producers will decide what will be produced. A.K.A. Free-enterprise, Laisse- faire & capitalism. Labor (the workers) and management (the bosses/owners) together will determine how goods will be produced in a market economy.

How do societies decide what to produce and for whom to produce it?

How do societies decide what to produce how do you produce it and for whom to produce it? An economic system is the method used by a society to produce and distribute goods and services. Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it.

For whom to produce what to produce and produce these are called?

Command System. The government controls all markets determining what to produce, how to produce, and for whom to produce. Who decides what to produce, how to produce, and whom goods and services are produced for in a command economy?