Which Is Not One of the Five Fundamental Questions

question 34

Multiple Choice

Which is not one of the Five Fundamental Questions?

• A)How will the goods and services be produced?
• B)How will the system accommodate change?
• C)Who will get the goods and services?
• D)What goods and services should be produced by government?

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Definitions:

Deadweight Loss

A decrease in economic efficiency due to the failure to achieve or the impossibility of achieving equilibrium for a good or service.

Price-Elastic

Describes a good's demand sensitivity to changes in price; high elasticity indicates demand is highly responsive to price changes.

Excise Tax

A tax paid on specific goods and services, such as tobacco and gasoline, usually levied at the point of manufacture or sale.

Tax Revenue

The revenue governments obtain from imposing taxes.