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Lesson 1 ProjectEconomic Questions and VisionThe two major stinting musical arrangements in the world are the capitalist (free market) economic scheme and the socialist economic system. The many different countries of the world usually have an economic system in place that contains elements of both capitalism and socialism. Since the philosophies of capitalism and socialism are opposite, an individual country and its economic system pull up s perplexs answer severalize economic motions differently. Regardless of how much that country or society supports either philosophy, the key questions their economic system must answer are the same. angiotensin-converting enzyme question that must be answered is, what goods pass on be produced? Another question is how will these goods be produced? Also there is the question to be answered, for whom will these goods be produced? The location of the economies operation on the production possibilities frontier (PPF) is besides very impor tant to production. The PPF is related to what goods are produced which depends on whether the economic system is based on capitalism or whether it is based on socialism. What goods will be produced in a capitalist economic systemIs resolute by what the market wants. As an example if the buyers and sellers want more computers, televisions, automobiles. houses, and pastime or food to be produced, then the production of these products will take place. (pages 56, 57, 58, and 59 of Economics 6th edition by Roger A. Arnold)In the capitalist economic system the sellers usually respond to the buyers changes in wants or preferences also. Goods and serve are produced when enough buyers exist that desire to buy those goods and services. If buyers start lacking(p) more of a certain product than another, production usually shifts to support the need. Capitalism is based on the concept of free enterprise and the doctrine of individual rights. This means freedom from private and government coercion. Production and divvy up help to increase the wealth that people need to support their life. In the capitalism system the person who creates the wealth is the owner of that wealth. (http//www.capitalism.org)What goods will be produced in a socialist economic systemIs decided by the government in control. The government may or may not be responsive to the wants of the ordinary citizen. Some economist believe that ane of the reasons for the fall of communism in the Soviet Union as wellspring as in Eastern Europe was a decline in economic growth.