Economics Assignment with Essays and Answers - Desklib

Running head: ECONOMICS ASSIGNMENT
ECONOMICS ASSIGNMENT
Name of the Student
Name of the University
Author note

ECONOMICS ASSIGNMENT
ESSAY 1
Answer 1
I have four hours of human capital. There are two things that can be produced with the human
capital. Option 1 is to play dart and option 2 is to throw tennis ball. In one hour I can throw
200 tennis balls or 200 darts. Therefore, in four hours I can either throw 400 tennis balls or
400 darts. Playing more darts mans throwing less tennis balls.
9
0 400 x
ESSAY 2
Question#1
A market system is defined as the network of sellers, buyers as well as other actors in
the market that joins hands together with the aim of trading in a given service or a product.
The core or main actors in a market system encompass consumers, buyers, producers (all
these actors are generally referred to as direct market players). On the other hand, command
economy is defined as an economy where the state or the central government makes virtually
I am
here
Where I want
to be
Number of Darts
thrown
Number of tennis
ball thrown 400
Y

ECONOMICS ASSIGNMENT
all decisions associated with the economy. In other words, the state or the central government
determines the kind of services and products that should be generated or produced in a given
country.
ANSWER 2
The economic system where the production of services and goods are distributed
through the free market mechanism are called the market economy. On the other hand, in
case of command economy the factors of production are been controlled by the
government. .Command economy is also known as the planned economy1. In this kind of
economy all the factors of production like land, labour capital are owned by the government.
The three basic economic questions that needs to be answered are
 what are the goods and services that needs to be produced?
 How they can be produced
 For whom to produce?
The economic system of a country depends on how the three questions are handled by the
country. There are four type of economic systems in the world which comprises of
 mixed economy,
 traditional economy
 command economy
 and market economy.
Market economy is most commonly practised in United States2. These three
questions are therefore answered by the interaction which takes place between buyers
and sellers in the market. Therefore the question of what to produce depends on both
1 Haggard, Stephan, and Robert R. Kaufman. The political economy of democratic transitions. Princeton
University Press, 2018.
2 Becker, Gary S. Economic theory. Routledge, 2017