Three basic decisions must be made by all economies. What are they?
a. How much will be produced; when will it be produced; who will produce it?
b. What goods will be produced; how will goods be produced; for whom will goods be produced?
c. What will be consumed; how will goods be consumed; for whom will goods be consumed?
d. How will the opportunity cost principle be applied; if the law of comparative advantage will be utilized, how will it be utilized; will the production possibilities constraint apply?
B
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When demand is perfectly elastic:
a. the demand curve is vertical. b. the demand curve is horizontal. c. consumers do not respond to price changes. d. suppliers do not respond to price changes.
In the table above, which case has the lowest relative price for a hamburger?
A) case A B) case B C) case C D) All three cases have an equal relative price for a hamburger.