What is the economic problem?
What will be an ideal response?
The economic problem is finding a way for a society to answer the three basic economic questions (what will be produced?, how will it be produced?, and who will get what is produced?) given that resources are scarce.
You might also like to view...
The price elasticity of demand depends on the
A) proportion of consumers' budgets spent on the good. B) number of available substitutes. C) extent to which the commodity is a luxury. D) all of the above.
Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."
A) It is not true. Revenue will increase as the price of the product increases only if demand is elastic. B) This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic. C) The statement is true. D) This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall.