Three Basic Decisions Must Be Made by All Economies

question 65

Multiple Choice

Three basic decisions must be made by all economies. What are they?

• A) How much will be produced, when it will be produced, and how much it will cost.
• B) What the price of each good will be, who will produce each good, and who will consume each good.
• C) What will be produced, how goods will be produced, and for whom goods will be produced.
• D) How the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply.

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Definitions:

Personal Distress

A psychological discomfort or anguish caused by exposure to others’ suffering or emergency situations, leading to a desire to alleviate that suffering.

DSM-5

The 5th edition of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals for diagnosing mental disorders.

Diagnostic

Pertaining to the identification of the nature or cause of a health problem, usually following a thorough examination or testing.

Statistical Manual

A publication containing standardized criteria, classifications, and statistical data used for diagnostic and research purposes in various fields.