Technology means the correct proportion in which the different factors of production are to be employed. Share Your PDF File Why? The solution of this problem is very simple commodity can be consumed only by people who have more purchasing power. Scarce resources are used in the production of goods and services with the objective of satisfying our needs and wants. Question: Explain The Three Fundamental Economic Questions Of What, How And For Whom, Stating Clearly The Considerations That Determine Each Question By Answering: What Goods And Services Will Be Produced? How will these goods and services be produced? At one extreme we have the free market economy, where there is a very limited role for the government. b. what will be produced?B. opportunity cost. Who Will Get The Goods And Services Produced? Economics is, essentially, the … The work in rural areas is often subsistence At the other end we have the command economy, where the government takes virtually total control. 2. who will consume goods?D. does not have to be answered by economies possessing great, Which of the following is an accurate list, of the steps of the scientific, One might commit the fallacy of composition by concluding that. c. Who consumes these goods and services? How will it be produced? The economic question of what will be produced is. D) how government officials decide which goods and services are produced. in answering the basic economic question for whom the product will be produced,the best response would be: How do people experience globalization this is determine by changes in the fertility rates and changes in life expectancy. The commodities which do not command positive prices in the market would not be produced. Thus, when the price of every commodity and every factor of production are determined, the third problem will be solved. Everything is scarce and an economic system tries to distribute scarce stuff (goods and services) to accommodate all those unlimited wants.
In order to decide how to do this, three questions must be asked and answered.
Three economic questions?
2. 1) 2)The most fundamental economic problem is A)security. b. Content Guidelines 2. Real GDP captures only the volume of what was produced.. Good question about the questions. This preview shows page 5 - 6 out of 6 pages. Choose the one alternative that best completes the statement or answers the question. With his salary, he buys goods from private businesses, and pays taxes to the government. 1)An incentive A)is the opposite of a tradeoff. b. primarily answered by markets in a command economy. ... pay him a salary. The government mandates that gasoline will contain 10% ethanol. B)could be a reward but could not be a penalty. services will be available for public use and which for private use. Deciding how a society's products are distributed among its citizens answers the economic question of asked Jul 4, 2016 in Economics by Countrygine A) how will the products be produced. Basically, there are only three systems. Self Check: Economic Systems. b) it determines for whom the goods are to be produced. Your brother scores an A grade for his Microeconomics test. a. how will goods be produced?C. D)could be a penalty but could not be a reward. It is not simple and not trivial. Exchange of goods is done through bartering. Let us consider the first question: ‘which commodities are to be produced and in what quantities? Who will receive the goods and services? In this type of economic system, what is produced is based on custom and the habit of how such decisions were made in the past. The quantity in which a commodity is to be produced is set at that level where demand equals supply. “For whom?” is a public choice question. d. What to produce, how to produce, and for whom to produce. Which of the following might impose a spillover cost? answer choices . The prices of labour and capital are determined by the demand for and supply of labour and capital respectively .In this way, the second problem will be solved. As an entrepreneur and as an economic agent, there are three basic economic questions you should ask when deciding how to allocate scarce resources. Introductory economics begins with the attempt to answer the following three questions about allocation. Welcome to EconomicsDiscussion.net! On the other hand, capital- intensive technique means more capital and less labour. “What to produce?” is an allocation question. 1 What will be produced, how will it be produced, and where will it be produced? MIEC d. How? For whom? There is the (probably apocryphal) story of the economic geography exam that asks students to describe the U.S. today if the Pilgrims had landed at what is now Long Beach, California, instead of Plymouth Rock. 120 seconds . 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