ECONOMICS
OPPORTUNITY COST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
In market economy, individuals provide goods & services to others & receive goods & services in return.
|
|
|
Comparison of costs & benefits of doing something.
|
|
|
By dividing tasks & trading, people get more of what they want thru trade than they could if they tried to be self-sufficient.
|
|
|
None of the above
|
Detailed explanation-1: -A market economy has freedom of choice and free enterprise. Private entrepreneurs are free to get and use resources and use them to produce goods and services. They are free to sell these goods and services in markets of their choice.
Detailed explanation-2: -In a market economy, private individuals, companies, and corporations own most of the resources. Individuals make decisions that contribute to supply and demand, which set prices and direct the production and use of goods and services.
Detailed explanation-3: -Businesses sell goods and services in exchange for money, which in this case is called revenue. Businesses are buyers in the markets for resources. Businesses exchange the revenue earned in the market for goods and services to buy land, labor and capital in the market for resources.
Detailed explanation-4: -A market economy, also known as a free market or free enterprise economy, is a system in which economic decisions, relating to things such as the prices of goods and services, are determined by supply and demand.