Test Bank-Financial Accounting-Warren Reeve-Duchac 12Ed Ch 8.

Which of the following best describes the three fundamental economic questions? a. What to produce, when to produce, and where to produce. b. What time to produce, what place to produce, and how to produce. c. What to produce, when to produce, and for whom to produce. d. What to produce, how to produce, and for whom to produce.2. Which of the following is not one of the three fundamental economic questions? a. What happens when you add to or subtract from a current situation? b. For whom to produce? c. How to produce? d. What to produce?3. Which of the following is correctly lists the three fundamental economic questions? a. If to produce? Why to produce? When to produce? b. If to produce? What to produce? How to produce? c. Why to produce? What to produce? How to produce? d. What to produce? How to produce? For whom to produce?4. Three basic decisions must be made by all economies. What are they? a. How much will be produced, when it will be produced, and how much it will cost. b. What the price of each good will be, who will produce each good, and who will consume each good. c. What will be produced, how goods will be produced, and for whom goods will be produced. d. How the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply.5. Because of the problem of scarcity, each economic system must make which of the following choices? a. How to produce? b. What to produce? c. For whom to produce? d. All of the above.6. Which fundamental economic question is most closely related to the issues of income distribution and poverty? a. The What to Produce question. b. The Why to Produce question. c. The How to Produce question. d. The For Whom to Produce question.