Which of the Following Is Not One of the Basic

question 8

Multiple Choice

Which of the following is not one of the basic economic questions that all economies must answer?

• A) What will be produced?
• B) To whom will the goods produced be allocated?
• C) How will goods be produced?
• D) Which government agency will set the prices of the goods produced?

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Definitions:

Substitutability

The degree to which one good or service can be replaced by another in consumption or production, often influencing competition and pricing in markets.

Elasticity of Supply

A measure of how much the quantity supplied of a good or service changes in response to a change in price.

Factor of Production

Inputs used in the production of goods or services, typically categorized into land, labor, capital, and entrepreneurship.

Cross Elasticity of Demand

The ratio of the percentage change in quantity demanded of one good to the percentage change in the price of some other good. A positive coefficient indicates the two products are substitute goods; a negative coefficient indicates they are complementary goods.