Three basic decisions must be made by all economies. What are they?
What will be an ideal response?
what will be produced, how goods will be produced, and for whom goods will be produced
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A manufacturer of wood chippers estimates that the probability of a fatal accident caused by the design of its product is 1/40,000 and the value of a life lost is $2 million
The manufacturer can change the design to eliminate that chance for $60 per wood chipper and is prepared to incorporate all cost-justified precautions. Will the manufacturer change the design? What would the benevolent social planner think about the manufacturer's decision if the true probability of a fatal accident is actually 1/30,000?
Which of the following countries has not experienced hyperinflation in the twentieth century?
A. Germany B. Russia C. Argentina D. United States
What is the Federal Reserve best known for?
(A) For setting the discount rate. (B) For the fractional reserve banking system. (C) For regulating the nation's money supply. (D) For bank examinations.
If the exchange rate between the United States and India changes from $1 = 60 rupees to $1 = 10 rupees, ceteris paribus
A. Indian exports to the United States increase. B. the United States imports from India increase. C. the trade deficit in the United States increases. D. the United States exports to India increase.