The questions that an economic system attempts to solve include
A) what to produce.
B) how to produce items.
C) for whom items are produced.
D) all of the above.
D
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The Fed's narrowest measure of money is ________
A) M1 B) M2 C) M3 D) all of the above E) none of the above
When network externalities are present, the market demand for the good in question becomes:
A. less elastic. B. more elastic. C. unit elastic. D. perfectly inelastic.
Most economists believe that a tradeoff between inflation and unemployment exists
a. only in the short run. b. only in the long run. c. in both the short and long run. d. in neither the short nor long run.
Which of the following might be a method that the government could use to correct a negative externality?
A) an effluent fee on waste from the production of goods that create negative externalities B) government subsidies to producers of goods that create negative externalities C) financing additional production of goods that create negative externalities D) encouraging overallocation of resources of production of goods that create negative externalities