Question

What are the functions of an economy?

Answer 1

Instructions: Mention the functions of an economy.

Solution:

• Deciding the product to be produced and its quantity of production.
• Aiming to minimise the production costs involved to produce a product.
• Ensuring the distribution of national income in order to achieve social and economic justice.
• Foreseeing and ensuring the economic needs of the future through planning.
• Deciding for whom goods and services shall be produced.