1. Every society must answer the three questions: What to produce? How to produce it? Whom to produce ot for?
2. An economic system is the system of production, distribution and consumption of goods and services of an economy. The four type of economic systems are: Command Economy- controlled by the government. ex. Cuba , North Korea, and China all have command economies.
Market Economy- owned and controlled by the people. ex.UK and Germany have market economies. Traditional Economy-economic decisions are determined by habit and tradition. ex. if your family is a doctor you will be too. Mixed Economy-a mix of private and government controll.
ex.U.S and Cuba have been referred to as a mixed economy.
3.The four economic systems answer the three basic economic questions based on their values and the type of economic system it is. A traditional economy is based on tradition and customs determined by members of society. A command economy's government officials answer the three basic questions. In a market economy individuals (buyers/sellers) answer the three basic questions. A Mixed economy has a combination of economic systems.
4. The United States reflect a combination of economic systems because it uses the mixed economy economic system. A mixed economy uses charactristics from all forms of government.
5. The Inuit uses a traditional economic system. in a traditional economic system the people's actions are based on tradition and customs. The fact that the people teach their children that they must always do their best at every task and praises them when they complete the task successfully can be seen as a custom. It is something that they instill in all their people so the act will continue even when the kids are adults.
6.The economic systems compare because they all regulate goods and services and contrast because they each have their own way of producing the goods and services.
7. I did not fully understand the invisible hand and the Adam Smith's theory enough to answer this question.
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