Economics Chapter 2
What are the three basic economic questions all societies must answer?
What goods and services should be produced, how should they be produced, and who will consume them
The distribution of income received in the form of rent, wages, or interest is the main factor that determines
Who consumes goods and services
Which economic goal reflects the desire of individuals to make their own choices about owning property or becoming entrepreneurs?
Freedom
How does innovation promote economic growth?
By introducing new goods and services that create new markets
An economy that maximizes its scarce resources and can deliver the right goods in the right quantity to the right people at the right price has achieved which economic goal?
Efficiency
Which basic economic goal is most easily achieved in a traditional economy?
Equity