The Two Big Economic Questions Include All of the Following

question 35

Multiple Choice

The two big economic questions include all of the following except

• A)for whom to produce.
• B)how to produce.
• C)what to produce.
• D)why to produce.
• E)a determination of whether the pursuit of self- interest also promotes the social interest.

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Definitions:

Profit-maximizing Output

The production level where maximum profit is achieved by a company, when the marginal cost matches the marginal revenue.

Fixed Cost

Costs that do not vary with the level of output or production in the short term, such as rent, salaries, and insurance premiums.

Lawn-mowing

The process of cutting grass to a uniform length, typically performed as a maintenance activity for aesthetic and health reasons in gardens and lawns.

Variable Costs

Expenditures that change in direct correlation with the amount of output or production.