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?
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?
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?
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?
Signup and view all the answers
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?
Signup and view all the answers
What is the primary basic economic problem that an economy faces?
What is the primary basic economic problem that an economy faces?
Signup and view all the answers
Why does the problem of selecting goods for production arise?
Why does the problem of selecting goods for production arise?
Signup and view all the answers
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?
Signup and view all the answers
Why must an economy make choices about what goods to produce?
Why must an economy make choices about what goods to produce?
Signup and view all the answers
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?
Signup and view all the answers
