Why Is It Necessary for All Economic Systems to Not

question 143

Multiple Choice

Why is it necessary for all economic systems to not only provide people with goods and services,but also restrict them from getting as much of these goods and services as they wish?

• A) Failure to do this could reduce the efficiency of the system by producing some goods and services that are not as highly valued as others.
• B) Failure to do this could lead to an inequitable allocation of goods and services produced.
• C) Failure to do this could lead to drastic shortages of good and services.
• D) Failure to do this could reduces efficiency and leads to an inequitable allocation of output.

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Definitions:

Business Operation

The day-to-day activities and processes undertaken by a company to produce goods and provide services, maintain workflows, and generate profits.

Expenses

Costs incurred by a business in its operational activities.

Profitability Analysis

Marketing analytics tool that measures how much profit the firm generates, as well as how much profit certain aspects of the firm, including regions, channels, and customer segments, contribute.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a business.