Three Economic Questions Must Be Determined in All Societies

question 20

Multiple Choice

Three economic questions must be determined in all societies. What are they?

• A) What goods will be produced? How will goods be produced? For whom will goods be produced?
• B) What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced?
• C) What will the price of each good be? Who will produce each good? Who will consume each good?
• D) How much will be produced? When will it be produced? How much will it cost?

Understand the role of culture in the experience of emerging adulthood.

Recognize age-related changes and developmental stages unique to young adults.

Analyze the impact of work and education on the life choices of young adults.

Evaluate the role of cognitive development in adulthood.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Price Elasticity

Quantifying the demand shift for an item in response to its price adjustments.

Responsiveness

The ability or tendency of an entity or system to react to changes, stimuli, or feedback from the environment.

Complements

Products that are usually consumed jointly (for example, bread and butter, hot dogs and hot dog buns). A decrease in the price of one will cause an increase in demand for the other.