An economic system: a. must choose pure capitalism to adequately answer the three economic questions. b. must answer the three economic questions to the satisfaction of everyone in society. c. is a set of social institutions and mechanisms organized to answer society's three primary economic questions. d. can address problems of scarcity only by embracing the social institution of private property. e. must not allow some members of society to gain an unfair advantage when answering the three economic questions.

An economic system: a. must choose pure capitalism to adequately answer the three economic questions. b. must answer the three economic questions to the satisfaction of everyone in society. c. is a set of social institutions and mechanisms organized to answer society's three primary economic questions. d. can address problems of scarcity only by embracing the social institution of private property. e. must not allow some members of society to gain an unfair advantage when answering the three economic questions.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section2.1: The Economist As Scientist

Problem 1QQ

See similar textbooks

Related questions

Q: What are the four basic economic questions? How are they answered in a capitalist economy?

A: The four basic questions concerning an economy are: (a) What and how much quantity of goods and…

Q: In Denmark, the resources of the country are utilized efficiently to produce socially useful goods…

A: The economic system shows and define how the capital, resources, factor of production are divided in…

Q: microeconomics

A: Microeconomic policies are those which are concerned with the individuals or firms or industries…

Q: What would Friedrich Hayek say regarding these calls to rethink and redo the economic system? Use…

A: Friedrich Hayek contributed significantly to economics, political philosophy, and social theory. He…

Q: OD. What kind of government will the society have, how will it be run, and who will run it?…

A: A centrally planned economy is one in which the government undertakes the production of goods and…

Q: Determine whether the following statements is valid or not. The problem of scarcity is due to the…

A: The term "scarcity" describes the situation in which there are not enough resources to meet all of…

Q: source Allocation B. Resource Utilization C. How to maximize individual economic unit D. General…

A: Microeconomics is the branch of economics in which we study individual behavior regarding decision…

Q: Self-interested behavior can lead to positive social results. Adam Smith says that the actions of…

A: The invisible hand is a metaphor for how, in a free market economy, self-interested individuals…

Q: Why did ancient Rome advocate natural economy and oppose commodity economy? Explain in detail

A: Economy: An economy is a system of interconnected activities in production and consumption that…

Q: Which one of the following occurs in capitalistic economy? a. Means of production are owned by the…

A: Capitalism is defined as an economic system which is characterized by private ownership of the means…

Q: Explain the basic ideas of microeconomics.

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Does an individual consumer really have a voice in answering the basic four economic questions…

A: The basic questions of economics are; what to produce?, how to produce? and for whom to produce?. An…

Q: he idea that because of scarcity, producing more of one good or service means producing less of…

A: Scarcity refers to one of the basic problems of economics. Scarcity means that resources are limited…

Q: Which of these statements best describes what microeconomics is? a. The study of National Income a…

A: Economics is the branch of knowledge which is concerned with production, consumption and…

Q: Does an individual consumer really have a voice in answering the "basic four economic questions"?…

A: Individual consumer cannot voice in the basic four economic questions. These questions are answered…

Q: Which of the following statements does NOT illustrate normative economic thought? a. Monopolies…

A: In society, people have to choose because of limited resources and unlimited wants. Economics study…

Q: “Scarcity is the fundamental problem that every nation in this world faces.” What do you mean by…

A: Economic decisions are those decisions in which people will choose what to do with limited…

Q: Write TRUE if the statement is right and FALSE if it is wrong: _____ 9. We run into scarcity…

A: The economics is the study about the allocation of limited across the people of the country.…

Q: Which of the following assertions is NOT a basic economic assumption? a. People act rationally. b.…

A: Economics is all about assumptions, it is related to production, distribution, scarcity, consumption…

Q: Economists use the phrase ceteris paribus to express the assumption Select one: a. "all else equal."…

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: Which of the following is not characteristic of capitalist thought?a. Private individuals have a…

A: Capitalist economy: - it is that economic system where the price, quantity, and types of goods and…

Q: What is the production possibilities frontier? A. a map that shows areas of the world in which…

A: Economics relates to the organization of money, business, and industry.

Q: 1. In a command system a) self-interest motivates and commands each business firm's decisions and…

A: Command System:A command system is an economic system where the government or a central authority…

Q: True or false? Part A. Millionaires do not face the problem of scarcity. Part B. The factors of…

A: Economics deals with the allocation of scarce resources among alternative uses to satisfy human…

Q: What is Economic System? And what system is the best system your community will use and implement to…

A: The economics as a study is based upon the idea that the resources which are present with the…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define economic system

VIEW

Step 2: Explanation of correct answer

VIEW

Step 3: Explanation of wrong options

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the production possibilities frontier? A. a map that shows areas of the world in which capitalist production is highest B. a map that shows the frontier beyond which technological innovation is unprofitable C. a graph that shows the various combinations of resources that can be used to produce a given level of output D. a graph that shows the various combinations of output the economy can possibly produce given the available resources and technology
The three economic questions that every society must answer are OA. What are the prices of goods, how are they determined, and who will pay for them? OB. What economic system will be used, how will it be implemented, and who will make market decisions? OC. What goods will be produced, how will they be produced, and who will receive the goods? OD. What kind of government will the society have, how will it be run, and who will run it? Centrally planned economies allocate resources based on decisions by while market economies answer these questions through decisions made by
The idea that because of scarcity, producing more of one good or service means producing less of another good or service refers to the economic concept of A. a trade-off. B. equity. C. optimization. D. efficiency.
True or false? Part A.Millionaires do not face the problem of scarcity. Part B.The factors of production include all goods and services produced in an economy. Part C.The United States is one of the least “marketized” economies in the world.
“Scarcity is the fundamental problem that every nation in this world faces.” What do you mean by this statement? If you were an economist how would you address this fundamental problem?
Which of these statements best describes what microeconomics is? a. The study of National Income a country b. The study of the global economy c. The study of decisions that businesses and individuals make in the marketplace d. The study of economic phenomena that affects an entire economy
Does an individual consumer really have a voice in answering the basic four economic questions described in Types of Economic Systems?
The problems that microeconomics addresses are: A. Resource Allocation B. Resource Utilization C. How to maximize individual economic unit D. General economic issues
What is Economic System? And what system is the best system your community will use and implement to address scarcity, as an Economic Manager?
REFLECTIONDirections: Read the article below . Then , discuss how the economic program of the government administration puts solution to the problem of scarcity in the country.Write your answer in a reflective way.
Economists use the phrase ceteris paribus to express the assumption Select one: a. "all else equal." b. "everything affects everything else." C. "there is no such thing as a free lunch." d. "scarcity is a fact of life."
Which one of the following occurs in capitalistic economy? a. Means of production are owned by the government b. The element of a market and the command economy c. It functions with a focus on welfare d. Completely free market operation