Every Economy Must Answer Each of the Following Questions Except

question 32

Multiple Choice

Every economy must answer each of the following questions except one.Which is the exception?

• A)Which goods will be produced?
• B)Why are these particular goods produced?
• C)Which resources should be used?
• D)How should resources be combined to produce each product?
• E)Who will actually consume the goods produced?

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Definitions:

Dominant Strategy

A strategy in game theory that yields the highest payoff for a player no matter what the other players do.

Annual Profit

The total earnings a company makes in one fiscal year after all expenses and taxes have been subtracted from its total revenue.

Nash Equilibrium

A concept within game theory where each player's strategy is optimal when considering the decisions of other players, leading to a situation where no participant can gain by unilaterally changing their strategy.

Duopolists

Two firms or parties that dominate the market for a particular product or service.