Basic Economic Questions

Good evening, ladies and gentlemen.

To my mind, today is an amazing day and I’d like to give a presentation for you.

Firstly, let me introduce myself :  I’m the student from the Financial University under the Government of the Russian Federation, the faculty of Accounting and Auditing , group number 5 and my name is Podchufarova Elena.

My presentation is about Basic economic questions.

If you have any questions, I’ll be glad to answer them at the end of my presentation. 

Now, pay attention to the plan of the presentation.

I’d like to begin by translating some words for make your understanding better.

Then go on to determine what economic questions are called basic

In the next point I’ll tell a bit about solutions of different economic systems

Then we’d like to focus on every question

In conclusion you’ll know about the importance of the basic economic questions

And now let’s go point by point

Please, pay attention to the vocabulary:

A production possibilities curve – кривая производственных возможностей

Entrepreneur – предприниматель

solvent demand – платежеспособный спрос

stratification of society – расслоение общества

First of all let me clear what quastions are called basic and why.

 As we know, human wants are unlimited but our resources are, unfortunately, limited. And in this situation it’s necessary to make right economic decisions.

Every group of people, individuals and nations must solve basic economic problems of daily living. They are:    
What goods and services will be produced?
How will they be produced?

Who will they be produced for?

Now let’s speak about types of economy systems

The economy system of a country is based on how the country handled these three questions.

Presently there are four main types of economic systems in the world, the traditional economy, the command economy, the market economy and the mixed economy.

Traditional economy gives answers to the three questions based on traditions, customs and the way the society had dealt with these questions in the past history.

Second one is the command economy in this kind of economy the government is the one who answer all these questions and citizens is not given a chance to decide.

The next one is the market economy, when these questions are answered in the marketplace by the interaction of buyers and sellers.

And in mixed economy, the economic system answers the three questions both in the marketplace and in the government.

Today market system is the most widespread, so we’ll focus on its answers for the basic economic questions.  

And the first one is:
What goods and services will be produced? 
The answer to this question is that we let the supply and demand of the market determine what and how much to produce. Goods that consumers are both willing and able to buy, and producers are willing and able to make, get made in the amount that both working together see fit. You may be willing and able to go to the Mars, but no supplier is willing and able to make that available at this time. But just think about all the items that are available in the markets we have today.
All businesses must decide what to produce given limited resources.