In a market system, the answer to the "for whom to produce" economic question is that goods are allocated to those with the willingness and ability to pay, as expressed through market demand

An economic principle that explains why people pursue different occupations is

A) absolute advantage. B) international trade. C) comparative advantage. D) NAFTA.

Which term is used to describe equilibrium at a level of output above potential GDP?

a. Recessionary gap b. Inflationary gap c. Deflationary gap d. Keynesian gap