Question

Create a chart with three columns labeled Traditional Economy, Command Economy, and Market Economy.

In each column, write one simple sentence answering each question:
What to produce?
How to produce?
For whom to produce?

Answer 1

Traditional Economy
- What to produce? Goods and services are produced according to customs, traditions, and what the community has always done.
- How to produce? People use traditional methods and tools passed down through generations.
- For whom to produce? Production is mainly for the local community and family needs, with little surplus for trade.

Command Economy
- What to produce? The government decides which goods and services will be produced.
- How to produce? The state determines production methods, resource allocation, and quotas.
- For whom to produce? The government allocates output to consumers according to central plans and priorities.

Market Economy
- What to produce? Producers decide based on consumer demand and profit opportunities.
- How to produce? Firms choose methods that minimize cost and maximize efficiency under competition.
- For whom to produce? Goods are produced for those who can buy them; distribution depends on purchasing power.