Discuss the three fundamental economic questions that all nations must address
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 biggest barrier to growth for many of the poorest countries in the world is the need for:
A. more physical capital. B. larger populations. C. more human capital. D. improved legal and political frameworks.
During the colonial period, this region specialized in grain production, primarily using family farms:
a. the Middle colonies b. the Southern colonies c. the New England colonies d. Newfoundland
When two _____ monopolists merge, one division of the newly merged company will transfer its output to another division at its actual cost, instead of its profit maximizing price
a. price discriminating b. natural c. output rationing d. successive
Suppose a banking system has a required reserve ratio of 0.15. How much can the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system?
A. $150 million. B. $6.67 billion. C. $1 billion. D. $15 billion.