The final maximum combination occurs when all three workers iron pants. The household can obtain combinations in the middle of the line segments by having one person split their time between shirts and pants. As the number of types of resources increases, the number of line segments would increase and the PPF would look smoother. Notes for pp. A fundamental concern in economics is how well different economic systems answer three fundamental questions.
Scarcity imposes three fundamental questions on every economy.
Three broad types of economic systems may be used to answer these fundamental questions Pure market system Voluntary, unrestricted laissez-faire exchange between buyers and sellers. Associated with capitalism. Pure command system Activities directed by government, king, czar, or other authority. An economy based on religion or custom Economic decisions are based on tradition Women are restricted from many occupations in some Islamic countries. The caste system in India limits occupational choice.