Question : 60) Fast food restaurants produce a range of menu items : 1387266

60) Fast food restaurants produce a range of menu items such as hamburgers, chicken sandwiches, salads, and french fries. What fundamental economic question are they addressing by offering this range of items?

A) How to produce goods that consumers want?

B) Why produce a variety of menu items?

C) What to produce?

D) Who to produce the menu items for?

61) Consider the following economic agents:

a.the government

b. consumers

c.producers

Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?

A) the government

B) producers

C) consumers

D) consumers and producers

E) the government, consumers and producers

62) In a market economy, who decides what goods and services will be produced?

A) only the producers

B) only consumers

C) consumers and producers

D) the government

63) Which of the following is correct about the economic decisions consumers, firms, and the government have to make?

A) Governments may face the problem of shortages but not scarcity in making economic decisions.

B) Only individuals face scarcity; firms and the government do not.

C) Firms and the government face scarcity; individuals only face shortages.

D) Each faces the problem of scarcity, which necessitates trade-offs in making economic decisions.

64) It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish, because failure to do this could ________ the efficiency of the system by producing some goods and services that are ________.

A) reduce; not as highly valued as others

B) increase; not as highly valued as others

C) reduce; valued more than others

D) increase; valued more than others

65) How does a market system prevent people from getting as many goods and services as they wish?

A) Governments interfere with the market mechanism to influence the allocation of goods and services.

B) In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish.

C) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor.

D) The government imposes taxes on those who earn beyond a certain amount of income.

66) In a market economy, those who are willing and able to buy what is produced

A) receives what the government allows them to receive.

B) receive the most of what is produced.

C) receive no more than everyone else in the market.

D) solely determine what is produced.

67) How are the fundamental economic decisions determined in Cuba?

A) Individuals, firms, and the government interact in a market to make these economic decisions.

B) These decisions are made by the country’s elders who have had much experience in answering these questions.

C) The government decides because Cuba is a centrally planned economy.

D) The United Nations decides because Cuba is a developing economy.

68) In a market economy, ________ interact in markets to decide the answers to the fundamental economic questions.

A) state and local governments

B) large corporations

C) households and firms

D) the judicial and legislative branches of the federal government

69) Which of the following is a problem inherent in centrally planned economies?

A) There are no problems and everyone, including consumers, is satisfied.

B) There is too much production of low-cost, high-quality goods and services.

C) Production managers are more concerned with satisfying government’s orders than with satisfying consumer wants.

D) Unemployment is too high.