What Are the Three Fundamental Questions in Economics

question 37

Multiple Choice

What are the three fundamental questions in economics?

• A)What to produce,how to produce it,and for whom is it produced.
• B)Is it necessary,is it right,and is it valuable.
• C)Who should produce,what is the right way to produce,and how should we decide.
• D)What to produce,how to produce it,and who should produce it.

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Definitions:

Fundamental Attribution Error

The tendency for people to over-emphasize personality-based explanations for behaviors observed in others while under-emphasizing situational explanations.

Actor-Observer Difference

A tendency to attribute one's own actions to situational factors while attributing others' actions to their dispositions.

Similar-To-Me Effect

A bias where individuals are more favorable towards others who they perceive as similar to themselves in some manner.

The Halo Effect

The halo effect is a cognitive bias where the perception of one positive trait influences the perception of other traits of an individual or object.