The Two Big Economic Questions Include All of the Following

question 52

Multiple Choice

The two big economic questions include all of the following except

• A)what to produce.
• B)why to produce.
• C)how to produce.
• D)for whom to produce.
• E)can choices made in the pursuit of self-interest also promote the social interest.

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Definitions:

Downward-sloping Demand

A market phenomenon where demand for a product decreases as the price increases, indicating consumers buy less of the product at higher prices.

Competitive Price-searcher

A firm operating in a market where it must search for the optimal price that balances its desire for profits with the need to remain competitive.

Long-run Equilibrium

A state in which all firms in a market are making zero economic profit, leading to an optimal allocation of resources.