The basic economic problems will not be solved by ?
Correct answer: D. The creation of unlimited resources
- A. Market forces
- B. Government intervention
- C. A mixture of government intervention and the free market
- D. The creation of unlimited resources
Explanation
Economic problems arise because resources are scarce relative to unlimited wants; creating unlimited resources would remove the scarcity problem in theory. Market forces, government action, or a combination can all help allocate scarce resources.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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