
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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**Understanding Economic Systems: Key Decision-Makers and Functions**
**Who answers the three key economic questions in a command economic system?**
- Custom & tradition
- Individual producers and consumers
- A central authority
- Government and individuals
**What is the function of an economic system?**
- To coordinate production and distribution of goods and services
- To ensure people are paid for their labor
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This content provides insight into essential aspects of economic systems:
1. **Decision-Making Entities**: In a command economic system, decision-making typically falls to a **central authority**, which orchestrates the production and allocation of resources.
2. **Primary Functions**: The main purpose of an economic system is **coordinating production and distribution**. Additionally, it ensures that individuals are compensated for their labor, maintaining a structured economy.
This educational resource aims to clarify the roles and objectives inherent in different economic structures.
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In command economy all the production and allocation decisions are centralised.
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