Every Economy Must Answer Each of the Following Questions, Except

question 43

Multiple Choice

Every economy must answer each of the following questions, except for one. Which of the following is the exception?

• A) Which goods will be produced?
• B) Why are these particular goods produced?
• C) Which resources should be used?
• D) How should resources be combined to produce each product?
• E) Who will actually consume the goods produced?

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Definitions:

Special Reserves

Funds or assets set aside for specific, often unforeseen, needs or requirements.

Floating Exchange Rates

A currency valuation system that allows the value of a currency to fluctuate according to the foreign exchange market.

Pesos

The currency used in several Latin American countries, including Mexico and Colombia, often symbolized by the "$" sign.

Investments

The action or process of allocating capital or resources to an entity or project with the expectation of obtaining an additional income or profit.