assignment 3...

1. the 3 basic economic questions are for whom, what, and how.
2. and econimic system is the system of production and distribution and consumption and four types are market, command, traditional, and mixed.
3. A market economy is the type of economy that the United States has and these questions are answered in the marketplace by the interaction of buyers and sellers. For example, the question of what to produce may be based on what trend is popular right now. The producer would create a product that they think would sell well to the public in hopes to make a profit. The question of how to produce is usually based on the producer's choice. They might decide to produce a product with more workers or they might decide to produce it more with machines and computers to save on labor costs. The question involving for whom to produce is based on the buyer who decides what they want or need and what price they are willing to pay for it.

A traditional economy is an economy that answers the three questions based on their social customs and how the society has dealt with these questions in the past. A country's customs can differ greatly to that of a neighboring country so traditional economies vary from one another.

A command economy is an economy where these questions are all answered by the government.     Rather than giving indviduals the chance to decide what they want or need, the government decides these  questions for the country. This type of economy is difficult for the individual because it is impossible for the government to know exactly what is best for each and every citizen.

A mixed economy is an economic system that answers the three questions both in the marketplace and in the government. Although the United States government plays a role in our economy, a mixed economy usually involves producers working closer with the government than they do in the United States so the US economic system is still a market economy.

    
4. The us is mixed because economy where some resources are allocated through the price or market mechanism and others are allocated by the state.

5. this is an example of a traditional economic system because every teacher teacher the same thing to every student every year.