The Question of "How Are Goods and Services Produced?" Most

question 27

Multiple Choice

The question of "How are goods and services produced?" most closely addresses which of the following issues?

• A) Should Ford build SUVs or luxury cars?
• B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs?
• C) Should contractors building residential housing or shopping malls?
• D) Is income distributed fairly in the United States?
• E) Why are Christmas trees popular only in December?

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Definitions:

GDP

Gross Domestic Product, a measure of the economic output of a country, considered by calculating the total value of all final goods and services produced within that country over a specified period.

Disposable Personal Income

The total income households have after taxes and other deductions, available for spending, saving, or investment.

Non-tax Payments

Fees or charges paid to the government that are not considered taxes, such as fines, licenses, or charges for public services.

Noncorporate Businesses

Businesses that are not incorporated and typically include sole proprietorships, partnerships, and family-owned entities.