Podcast
Questions and Answers
What motivates producers in a free-market economy to make decisions about what goods to produce?
What motivates producers in a free-market economy to make decisions about what goods to produce?
- Centralized planning directives
- Social welfare concerns
- Profit considerations (correct)
- Government regulations
In a capitalist economy, how are decisions about the allocation of resources typically made?
In a capitalist economy, how are decisions about the allocation of resources typically made?
- Through the free-market price mechanism (correct)
- Based on social welfare considerations
- Through a centralized planning committee
- By government officials
What branch of economic theory explains how the relative prices of goods are determined?
What branch of economic theory explains how the relative prices of goods are determined?
- Microeconomic Theory (correct)
- Marxist Theory
- Socialist Theory
- Macroeconomic Theory
What forces determine the production of goods and the allocation of resources in a free-market economy?
What forces determine the production of goods and the allocation of resources in a free-market economy?
Why do some resources need to be allocated to war goods during times of conflict?
Why do some resources need to be allocated to war goods during times of conflict?
What is the primary basic economic problem that an economy faces?
What is the primary basic economic problem that an economy faces?
Why does the problem of selecting goods for production arise?
Why does the problem of selecting goods for production arise?
What happens if a society decides to produce a particular good in larger quantities?
What happens if a society decides to produce a particular good in larger quantities?
Why must an economy make choices about what goods to produce?
Why must an economy make choices about what goods to produce?
How does scarcity of resources affect the allocation of goods in an economy?
How does scarcity of resources affect the allocation of goods in an economy?
