Different economic systems answer the basic questions related to 'what, how and for whom differently:

1. Capitalist economies depend upon the market forces' of demand and supply to take these decisions. Only those goods will be produced which are in demand and those which give profit to the producers.

If labour is cheaper and more easily available than capital, labour-intensive technology will be used. The goods and services produced are distributed among the people not on the basis of what they need but on the basis of what they can pay for.

2. Socialist economy answers the questions in a different manner. The government decides what goods are to be produced in accordance with the needs of the society.

The government decides how the goods are to be produced and how they should be distributed It is assumed that the government knows what is good for the people and so all decisions are taken by the government through centralised planning.

3. In a mixed economy, the government and the market together answer these questions.

The market is allowed to operate more or less freely in the private sector but is regulated by the government so as to ensure maximum social welfare.
The market provides goods which it can profitably produce and the government provides goods and services which the market fails to do, for welfare maximisation