ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Not enough info
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None of the above
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Detailed explanation-1: -Economists address these three questions: (1) What goods and services should be produced to meet consumer needs? (2) How should they be produced, and who should produce them? (3) Who should receive goods and services?
Detailed explanation-2: -False, microeconomics deals with prices and production in the market whereas the study of aggregates is the matter of macroeconomics. 1) Macro-Economics is the study of aggregates. 2) Macro-Economics is also known as income and employment theory.
Detailed explanation-3: -The correct answer is option B: Economic models are based on facts and not assumptions about the relationship between variables. See full answer below.
Detailed explanation-4: -An economic system is any system of allocating scarce resources. Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed?