Answer:
- to decide how to handle the issue of scarcity
- what, how, and for whom things are produced
Explanation:
Economic system basically just a way for a society to distribute the resources that exist within their region.
Depending on the economic stem, the way we handle scarcity or production process could be really different.
For example,
In a fully free market system, the resources distribution will be determined by full blown competition between the demand and supply from people without any regulations from the government.
People can choose to produce production whatever they want and determine how and the target market for the production.
In a Mixed Market system , the resources distribution still determined by the competition among the people.
But, the government will play a role in creating regulations to ensure that the competition is played fairly and people's general well being is still taken care of trough welfare programs.