Three economic questions must be determined in all societies. What are they?
a. How much will be produced? When will it be produced? How much will it cost?
b. What will the price of each good be? Who will produce each good? Who will consume each good?
c. What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced?
d. What goods will be produced? How will goods be produced? Who will get the goods produced?
d
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A firm finds that at its MR = MC output, its TC = $1,000, TVC = $800, TFC = $200, and total revenue is $900. This firm should:
A. shut down in the short run. B. produce because the resulting loss is less than its TFC. C. produce because it will realize an economic profit. D. liquidate its assets and go out of business.
Which of the following does the crowding-out effect stress?
What will be an ideal response?