What Are the Three Basic Questions Faced by Every Economy

question 192

Multiple Choice

What are the three basic questions faced by every economy?

• A) What, how, and for whom will goods be produced?
• B) When, where, and how much will be produced?
• C) Why, where, and when will goods be produced?
• D) How, how much, and why will goods be produced?

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Definitions:

Contributed Capital

Equity that has been provided to a company by its shareholders through the purchase of stock.

Retained Earnings

The portion of a company's profits that is retained and not distributed to shareholders, often reinvested in the business or used to pay off debt.

Intangible Assets

Assets that cannot be seen, touched, or physically measured and are created through time and effort, such as trademarks, patents, and copyrights.

Current Liabilities

Financial obligations or debts of a business that are due to be paid within a year.