Three Basic Decisions Must Be Made by All Economies

question 144

Multiple Choice

Three basic decisions must be made by all economies. What are they?

• A) how much will be produced, when it will be produced, and how much it will cost
• B) what the price of each good will be, who will produce each good, and who will consume each good
• C) what will be produced, how goods will be produced, and for whom goods will be produced
• D) how the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply

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Definitions:

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Dust Bowl

A period of severe dust storms in the 1930s that greatly damaged the ecology and agriculture of US and Canadian prairies.

Great Plains

A broad expanse of flat land, covered in prairie, steppe, and grassland, located in the central United States and Canada.

Chlorofluorocarbons (CFCs)

Man-made chemical compounds once used in air conditioning, refrigeration, and aerosol propellants, known to deplete the ozone layer.