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:

Excess Profits

Profits that exceed the normal expected return on investment, often resulting from monopolistic or oligopolistic market structures.

General Equilibrium

A condition in an economy where supply and demand are balanced across all markets simultaneously.

Market Equilibrium

The state in which the supply of an item is exactly equal to its demand, leading to a stable market price.

General Equilibrium

This is an economic concept referring to the condition where all markets in an economy are in simultaneous equilibrium, with supply meeting demand in each market.