In a capitalist economy, allocation of resources is done by

Economic is the study of the efficient allocation of scarce resources.

The allocation of resources in a market economy is described by which of the following statements?The government decides which goods will be produced and which consumers will receive them.Buyers and sellers exchange goods and services on a voluntary basis.Prices and costs help producers decide whether they are producing too little or too much of a good. aI only bII only cIII only dI and III only. eII and III only.

Economics is concerned with understanding how limited resources are most likely to be allocated or used.ATrueBFalse

Economic Systems: Communism & Capitalism This activity is important because an economic system describes how a particular society distributes its resources to produce goods and services. A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with a limited supply of resources. Different economic systems attempt to resolve this central issue in numerous ways. The goal of this exercise is to demonstrate your understanding between the fundamental differences between communism and capitalism, two of the basic economic systems found in the world today, and how they address the distribution of resources. Determine whether each statement below is an example of capitalism or communism. 1. When John Wakoski was a teenager, he worked at his uncle's famous artisan pottery shop on weekends. 2. Because they always knew how much they were going to make and sell each month, the bread factory managers didn't worry about what other bread companies were doing. 3. Jack Sampson works in a highly competitive industry. He has to make sure he knows the trends of his market, so he always offers good value and retains his competitive advantage. 4. All of the money earned beyond the cost of running the shoe manufacturing business goes to the government. 5. Selena Franka chose to give all the money earned beyond the cost of running her footwear company to a charity. 6. Because the choice is so limited and she has to buy the same sweaters that everyone else has, Penny puts a lot of time into matching things together to be funky. 7. Every summer, Janet Webber goes to the mall to buy new shorts but gets so overwhelmed by all the different styles she just wears the ones she already owns. 8. Relative to people's incomes, the price for gasoline is quite high, so those who own cars are very conscientious about using them. 9. Each time there is a risk that the oil supply will decrease, or the supply does in fact decrease, gasoline prices skyrocket. 10. When Suzanna Kogan was a teenager, she worked at the state-owned bread factory where everyone in her family worked.

Economic problem means scarcity of resources.Question 5AnswerTrueFalse