When a firm decides to produce more electric cars and fewer gas guzzlers, it is most directly answering the part of one of the two big economic questions.

Question

Quizplus · Accepted Answer

The decision to produce more electric cars and fewer gas guzzlers is directly related to the question of "what" to produce. This involves making choices about which goods and services to produce, in what quantities, and using what resources. The firm is deciding to allocate its resources towards electric cars rather than gas-guzzlers.

When a Firm Decides to Produce More Electric Cars and Fewer