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 results of human action but not of human design
a. have traditionally led to anarchy b. can easily be converted into collective decision-making c. have frequently evolved over time into self-enforcing social institutions d. is in actually the result of planned education funding
An example of third parties in the market of automobiles is
A) a pedestrian that is affected by the polluted air from automobiles. B) a producer of automobiles. C) a consumer of automobiles. D) None of the above belongs to third parties.
Because the short-run average total cost curve slopes downward for an information product, the firm experiences
A) a downward sloping marginal cost curve. B) a downward sloping average variable cost curve. C) short-run economies of operation. D) long-run diseconomies of scale.
Suppose antitheft auto alarms are produced in a price-taker market that is initially in long-run equilibrium. It is estimated that only 23 percent of all autos have alarms. Due to rising auto theft, Congress mandates alarms in every vehicle. Assume complete compliance. If the industry is an increasing cost industry, price will
a. increase in both the short run and long run. b. decrease in both the short run and long run. c. increase in the short run but not in the long run. d. decrease in the short run but not in the long run.