Question

Explain the functions of an economy.

Answer 1

Every country has a different economy. But the main functions of an economy are similar. Some of the main functions of an economy are:

• Deciding the product and quantity of its production.
• Deciding for whom will the goods be produced.
• Minimising the production costs as much as possible.
• Distributing national income1 according to social and economic justice2.
• Making appropriate provisions3 for the economic needs of the future.