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:

Universalism

Suggests ethical standards apply across all cultures.

Cultural Relativism

Suggests there is no one right way to behave; ethical behaviour is determined by its cultural context.

Ethical Unethical

Pertaining to the distinction between actions or decisions that are morally right (ethical) and those that are morally wrong (unethical).

Perceptions

The process by which individuals interpret and make sense of sensory information, which can influence their behavior and decision-making.