What is the basic economic problem that societies must solve?(1 point)
Responses
1. How will the goods and services be produced?
2.How to allocate resources in order to best satisfy the needs and wants of people.
3. What goods and services should be produced?
4. Who will consume the goods and services?
2. How to allocate resources in order to best satisfy the needs and wants of people.
In which economic system are price signals, resulting from supply and demand forces, the only determining factor for the goods and services that the economy produces?(1 point)
a mixed economy
a market economy
a command economy
a traditional economy
a market economy
How do property rights influence the exchange of goods and services in the market?(1 point)
Property rights prevent producers from exhibiting profit-seeking behavior.
Property rights prevent market failures from arising in an economy.
Property rights determine ownership of resources among businesses, individuals, and governments.
Property rights allow consumers' wants and needs to control the output of producers.
Property rights determine ownership of resources among businesses, individuals, and governments.
The basic economic problem that societies must solve is:
2. How to allocate resources in order to best satisfy the needs and wants of people.
The basic economic problem that societies must solve is how to allocate resources in order to best satisfy the needs and wants of people. This can be answered by considering all the possible responses.
1. How will the goods and services be produced? To answer this question, one needs to consider the available resources, such as labor, capital, and technology. The method of production, the technology used, and the efficient allocation of resources are all important factors in determining how goods and services will be produced.
2. How to allocate resources in order to best satisfy the needs and wants of people. This involves determining the most efficient allocation of resources to meet the demands of society. It requires analyzing the trade-offs and opportunity costs of different allocation decisions, considering factors such as societal needs, consumer preferences, and resource availability.
3. What goods and services should be produced? This question involves determining the types of goods and services that should be produced to meet the needs and wants of society. It requires considering factors such as consumer preferences, resource availability, and societal priorities.
4. Who will consume the goods and services? This question pertains to the distribution of goods and services among the members of society. It involves determining how the benefits and costs of production should be allocated, considering factors such as income levels, fairness, and economic efficiency.
Overall, the basic economic problem can be summarized as the challenge of efficiently allocating limited resources to meet unlimited human wants and needs.