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:

Cash Flow

The amount of cash and cash equivalents being transferred into and out of a business, indicating its liquidity position.

Net Present Value

Net present value (NPV) is the calculation used to find today’s value of a future stream of payments and earnings, accounting for the time value of money.

Cost of Capital

The return rate that a company must achieve in order to compensate its investors for the risk of the investment, including the cost of equity and debt.

Industrial Furnace

A device used in manufacturing to provide high temperatures for processes such as melting metals or chemical reactions.