The Problem of Determining How Goods and Services Should Be

question 61

Multiple Choice

The problem of determining how goods and services should be produced is a problem of deciding:

• A) the best combinations of resources to be used for producing goods and services.
• B) the extent to which imports should be reduced relative to exports.
• C) the extent to which exports should be reduced relative to imports.
• D) who owns the resources.

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Definitions:

Goal Displacement

A phenomenon where the original objectives of an entity or project are overshadowed by new, sometimes unrelated goals over time.

Task Environment Theory

A concept in organizational behavior that examines external factors that potentially affect an organization's performance, such as competition and regulation.

Resource Dependence

The theory that organizations depend on resources from their environment to survive, which influences their behavior and strategies to obtain those resources.

Supply-side

An economic theory that proposes reducing barriers on the production of goods and services, such as lowering taxes and decreasing regulation, will stimulate economic growth.