Who makes the basic economic decisions in a command economy?
A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn’t rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.
How do consumers and producers make economic choices?
A choice is the alternative that best satisfies a person’s economic want. It is a decision that is made between two or more possibilities. Consumers are people who buy goods and services to satisfy their economic wants. Producers are people who make goods and provide services.
How are economic decisions made in each economy?
In a market economy, decisions about what products are available and at what prices are determined through the interaction of supply and demand. A competitive market is one in which there is a large number of buyers and sellers, so that no one can control the market price.
What are the obstacles in development of developing countries?
Many also face challenges emanating from high population growth rates, often high illiteracy rates, ethnic and religious conflict, outdated traditional education systems, and political cor-ruption.
What are the main obstacles faced by developing countries in the way of economic development?
Some important social and political hurdles include: large growing populations, gender inequality and corrupt and inefficient governments. Economic and financial hurdles include: a lack of capital investment, a crushing level of debt, poor terms of trade and inadequate technology.
What is most challenging for developing countries?
large aging populations economic and employment issues social and environmental issues outsourcing of jobs to nearby areas.
Is population growth an obstacle to economic development?
The increasing population adversely affects the national income and the per capita income. Due to this, the people have a low standard of living, which makes them less efficient. This hinders the rapid development of the country.
What are the barriers to development?
productivity in agriculture, greater inequality in the size-distribution of income, higher rate of growth of population, lower levels of literacy, weaker political and administrative structures, and various socio-cultural characteristics.
What causes least development of a country?
A country is classified among the Least Developed Countries if it meets three criteria: As of 2018 a country must have GNI per capita less than US$1,025 to be included on the list, and over $1,230 to graduate from it. Human resource weakness (based on indicators of nutrition, health, education and adult literacy).
What are the economic sources of developed countries?
Sources of Economic Growth
- Natural Factors. More land and raw materials should lead to an outward shift of PPF and thus an increase in potential growth.
- Human Factor. The quantity of labour is a factor that contribute to growth.
- Physical Capital.
- Institutional Factor.
What are the major economic sources of the country?
The sources are: 1. Human Resources 2. Natural Resources 3. Capital Formation 4.