Which of the following is NOT one of the basic questions that an economic system attempts to answer?
A) How to identify what people need?
B) What to produce?
C) How will goods and services be produced?
D) For whom will goods and services be produced?
Answer: A
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A decrease in unplanned inventory investment for the entire economy equals the excess of
A) output over aggregate supply. B) output over aggregate demand. C) aggregate supply over output. D) aggregate demand over output.
Other things remaining the same, if a nation's expected price level rises, the demand to hold money:
a. Falls. b. Rises. c. Does not change.
What is the main belief of utilitarianism?
a. People make rational choices by comparing marginal benefits with marginal costs. b. Utility varies from individual to individual depending on specific preferences. c. Society should seek the greatest happiness for the greater number. d. Society should utilize its resources better by distributing them more equally.
The basic goals of total utility maximization, total profit maximization, and total welfare maximization explain most market activity.
Answer the following statement true (T) or false (F)