The economic problem can best be stated as:
A. Given the fact that the economy is inefficient, how much and what type of government intervention should be used to improve the efficiency of the economy?
B. Given scarce resources, how exactly do societies go about deciding what to produce, how to produce it, and for whom to produce?
C. What is the best rate of economic growth for a society?
D. How can the economy improve technology so as to shift the production possibility frontier up and to the right?
Answer: B
You might also like to view...
What is an entrepreneur, and what decisions does an entrepreneur make in a market system?
What will be an ideal response?
Assume that a British investor buys a one-year U.S. Treasury bill that pays 6 percent annual interest. Given a yield of 4 percent on a comparable British Treasury bill, the U.S. dollar must depreciate 2 percent against the British pound during the year for interest rate parity to hold
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct?
A) The Social Security program funnels transfers from retired individuals to the youngest children of low-income families. B) Social Security is an entitlement which is available to everyone, including those who have not contributed to the fund during their active work years. C) Social Security benefits are received by people who had contributed to the fund during their active work years. D) As a public transfer payment, Social Security benefit is available only to the poor.
Economists would most likely use which of the following to test a hypothesis?
a. using an exact control of variables to determine buying preferences b. observing human behavior in a laboratory setting c. using surveys to ask people about their buying preferences d. observing human behavior in a retail store