Multiple Choice
Which of the following is a reason why the New York Stock Exchange (NYSE) began to trade mostly stocks?
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0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
Which of the following are major decisions that must be addressed by any economic system?
A
How to maximize government spending
B
How to eliminate all opportunity costs
C
What to produce, how to produce, and for whom to produce
D
How to ensure all resources are renewable
Verified step by step guidance1
Step 1: Understand that an economic system is a method used by societies to allocate scarce resources to satisfy unlimited wants.
Step 2: Identify the three fundamental economic questions every economic system must answer: (1) What to produce? (2) How to produce? (3) For whom to produce?
Step 3: Recognize that 'How to maximize government spending' is not a fundamental economic question but rather a policy choice within some economic systems.
Step 4: Understand that 'How to eliminate all opportunity costs' is impossible because opportunity cost is inherent in scarcity and choice.
Step 5: Note that 'How to ensure all resources are renewable' is an environmental or sustainability concern, not a core economic decision in traditional economic systems.
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