What Is the Great Economic Problem

question 140

Multiple Choice

What is the great economic problem?

• A) to satisfy as many of our wants as possible with our scarce resources
• B) to allocate resources so that there is no unemployment
• C) to find a solution to natural resource depletion
• D) to provide social justice to the exploited workers of the world

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Definitions:

Externalities Criteria

Standards used to evaluate the unintended consequences of economic activities on third parties not directly involved in the transaction.

Social Institutions

Structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.

Global Economy

The interconnected worldwide economic activities that determine the production, distribution, and consumption of goods and services.

Tax Exemption

A monetary exclusion that reduces the taxable income of an individual or organization, often granted by government policy.