ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Only those goods whose long-term profits are greater than average.
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Any good for which consumers are willing to pay a positive price.
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Any good whose production is characterized by the least-cost technology.
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Any good that returns its producers sufficient revenue to cover its total costs.
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Detailed explanation-1: -The circular flow model shows the interaction between two groups of economic decision-makers-households and businesses-and two types of economic markets-the market for resources and the market for goods and services.
Detailed explanation-2: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.
Detailed explanation-3: -The market system’s answer to the fundamental question “How will the goods and services be produced?” is essentially: “Using the least-cost production techniques.” The market system’s answer to the fundamental question “Who will get the goods and services?” is essentially: “Those willing and able to pay for them."
Detailed explanation-4: -Which of the following is true of a market system? A market system is a combination of centralized government initiatives and decentralized actions taken by firms.