The economic system and available resources play key roles in determining for whom goods and services are produced in a society.
The factor that determines for whom a society will produce goods and services is influenced by the economic system in the society. The economic system dictates how resources are allocated, production decisions are made, and distribution of goods and services occurs.
For example, in a capitalist economic system, goods and services are primarily produced for those who can afford them, leading to income inequality. On the other hand, in a socialist system, goods and services may be produced with more emphasis on meeting the needs of the entire society, potentially aiming for more equality.
Availability of resources in the society is also a crucial factor influencing production decisions. A society with limited resources may prioritize certain goods and services over others based on scarcity and demand.
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