The main problem facing societies with a surplus is_____________________?
Correct answer: B. what to produce how produce it and for whom to produce it
- A. how to get rid of it
- B. what to produce how produce it and for whom to produce it
- C. there is no problem it is divided equally
- D. how to keep it away from enemies
Explanation
Even when a society has a surplus, it must decide what to produce, how to produce it and for whom to distribute it. A surplus does not remove the problem of allocating scarce resources and income.
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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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