The Questions of What to Produce, How to Produce, and for Whom

question 204

Multiple Choice

The questions of what to produce, how to produce, and for whom are answered by

• A)free-market economies.
• B)economies that are a mixture of planning and markets.
• C)command economies.
• D)all economic systems in some manner.

Understand the concept of viral marketing and its relation to social media.

Recognize the significance of material types in the e-commerce supply chain.

Understand the implications of different e-commerce business strategies for organizational procurement and sales.

Understand the components and classifications within the statement of cash flows.

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Definitions:

Welfare Economics

The study of how the allocation of resources affects economic well-being.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay.

Consumer Surplus

The rift between the financial input consumers are willing to make for acquiring a good or service and the actual amount they spend.

Demand

Represents the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.