Discuss the three fundamental economic questions that all nations must address.
What will be an ideal response?
The three fundamental economic questions are the "What," "How," and "For Whom" questions which must be addressed by all societies. The "What" question pertains to what should the nation produce. What combination of goods would be best? How should that combination of goods be produced is the "How" question. We want to produce goods in the most efficient manner in order to maximize production. The "For Whom" question addresses for whom should these goods be produced. Who will get them?
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The fraction of capital that wears out every year is known as ________
A) gross investment B) depreciation C) net investment D) devaluation
During a primary election, Candidate A receives 45% of the vote, Candidate B receives 30%, and Candidate C receives 25%. This situation illustrates which of the following?
a. A voting cycle b. Partisan politics c. The electoral college d. The median voter result
In a capitalist market economy, the decision to save is made by the same people who make the major investment decisions
a. True b. False Indicate whether the statement is true or false
A bond is
A. A certificate acknowledging a debt and the amount of interest to be paid each year until repayment; an IOU. B. An insurance policy investor's purchase to protect against the possibility of falling stock prices. C. A coupon used to collect a dividend. D. A share in a corporation.