The 'For Whom to Produce' Question

question 122

Multiple Choice

The 'For whom to produce' question:

• A) is irrelevant in economics.
• B) means that society must ask whether government should override the market outcomes.
• C) is the most important question in economics.
• D) means that government should not intervene in market outcomes.

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Definitions:

Able

Generally refers to having the capacity, skill, or qualifications to perform an action or task.

Pay

The compensation received by an employee from an employer in exchange for work performed, typically provided as wages or salary.

Price Ceiling

A legally enforced upper limit on the price that can be asked for a product or service, beyond which it is not permissible to go.

Equilibrium Price

The market price where the amount of goods sellers are willing to sell equals the amount of goods buyers are willing to buy, creating a state of balance in the market.