3. What basic economic question is being addressed? The quantity in which a commodity is to be produced is set at that level where demand equals supply. Disclaimer Copyright, Share Your Knowledge Production efficiency 6. All economic systems must determine which goods and . Real GDP captures only the volume of what was produced.. b. a. Before publishing your Articles on this site, please read the following pages: 1. 3 What will be produced, why is it being produced, where will it be produced? You’ll have more success on the Self Check if you’ve completed the Reading in this section. c. What to produce, when to produce, and for whom to produce. b. primarily answered by markets in a command economy. Hence, to maintain stable equilibrium price it becomes necessary to make demand and supply equal. The quantity in which a commodity is to be produced is set at that level where demand equals supply. What goods and services should be produced? Choose the one alternative that best completes the statement or answers the question. The calculation of real and nominal economic growth can be shown using an example of an economy that only produces one … In context of this it is: ‘which techniques are to be adopted’? e. As an entrepreneur and as an economic agent, there are three basic economic questions you should ask when deciding how to allocate scarce resources. The semicircle shown at left has center xxx and diameter \overline{wz} wz start overline, w, z, end overline. Course Hero is not sponsored or endorsed by any college or university. How will it be produced? Share Your PDF File a. Who gets what is produced? Economics is the study of: A) how to invest in the stock market. Good question about the questions. c. When? What will be produced? Three Basic Economic Questions. Your brother scores an A grade for his Microeconomics test. Answers: 3 on a question: Which statement best describes the role of the government in a mixed economic system? D) how government officials decide which goods and services are produced. This rule is applicable for each commodity. The ways in which factors of production are combined determines the answer to which economic question?A. Economic geography and related fields devote themselves to the “where” question. The government mandates that gasoline will contain 10% ethanol. The commodities which do not command positive prices in the market would not be produced. 2. Question and answer A. who will use the products produced B. what goods and services to produce C. how the products will be produced D. who will produce the products The three basic economic questions include all the following except: who will produce the products. a. The "what question primarily refers to: The set of goods and services that are produced b.   Privacy c. What products government wants. MIEC An economy can produce either guns or butter with all available resources. b. Which of the following best describes the three fundamental economic questions? In this way, first central problem is solved. Economists want to answer the what, how, and for whom question about goods and services that are produced in the economy. Basically, there are only three systems. d. How? Let us consider the first question: ‘which commodities are to be produced and in what quantities? Hence, to maintain stable equilibrium price it becomes necessary to make demand and supply equal. SURVEY . How Will The Goods And Services Be Produced? Content Guidelines 2. 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. It rains unexpectedly after months of drought in your country. “What to produce?” is an allocation question. b) it determines for whom the goods are to be produced. d. How should it be ensured that goods and services are paid for? 4. 1)An incentive A)is the opposite of a tradeoff. What goods and services will be produced? This preview shows page 5 - 6 out of 6 pages. ANSWER: d POINTS: 1 How will the system accommodate change? Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Self Check: Economic Systems. With his salary, he buys goods from private businesses, and pays taxes to the government. B) how society uses limited resources. The economic problem. As a result, the first 200 units of guns are produced at a cost of only 50 units of butter. Suppose it currently produces all butter and it chooses to produce some guns, thereby giving up some production of butter. The economic question of what will be produced is: a. primarily answered by markets in a command economy. services will be available for public use and which for private use. 1 What will be produced, how will it be produced, and where will it be produced? This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. 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. QUESTION: 2 A PPC can shift its position if and only if TOS4. On the other hand, capital- intensive technique means more capital and less labour. d. What products to export. Tutorial - Introduction & Basic Economic Concepts_Oct 2012.docx, Tutorial 1 - Introduction & Basic Economic Concepts, Northwest Mississippi Community College • ECON 123, Study Guide for Principles of Management Accounting, Copyright © 2021. The Central problems of what and how much to produce; how to produce and for whom to produce are determined by the free price mechanism. sweet and chocolate wrappers into the pots. The economic question of what will be produced is. b. SURVEY . I need a little homework help! Who will receive the goods and services? ... A breakthrough in nanotechnology allows silicon chips for computers to be produced much more quickly and cheaply. d. does not have to be answered by economies possessing great wealth. Answer the question(s) below to see how well you understand the topics covered in the previous section. Q. What time to produce, what place to produce, and how to produce. That is, if labour is cheap and capital is expensive, a labour-intensive technique would be considered and vice-versa. Find answers and explanations to over 1.2 million textbook exercises. At one extreme we have the free market economy, where there is a very limited role for the government. D)could be a penalty but could not be a reward. 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. 1. Why? Scarce resources are used in the production of goods and services with the objective of satisfying our needs and wants. Who Will Get The Goods And Services Produced? a) it decides what is to be produced. 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. Which of the following is NOT a key economic question? Thus, when the price of every commodity and every factor of production are determined, the third problem will be solved. Q. Traditional Ecomony. a. primarily answered by the government in a system of pure capitalism. A labour-intensive technique would employ relatively more labour and less capital. c. 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