Three Basic Decisions Must Be Made by All Economies

question 22

Multiple Choice

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

• A) How much will be produced; when will it be produced; who will produce it?
• B) What goods will be produced; how will goods be produced; for whom will goods be produced?
• C) What will be consumed; how will goods be consumed; for whom will goods be consumed?
• D) How will the opportunity cost principle be applied; if the law of comparative advantage will be utilized, how will it be utilized; will the production possibilities constraint apply?

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Definitions:

Volunteer-Donor System

A system in which goods, services, or time are given by volunteers or donors without financial compensation.

Market-Based System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Human Organs

Parts of the human body that perform vital functions necessary for life, such as the heart, liver, and kidneys, which can sometimes be medically transplanted.

Government Tax

A compulsory financial charge imposed by a government on individuals, businesses, or goods to fund public services and infrastructure.