The set of mechanisms and institutions that resolve the basic economic questions is called the
A)economic system
B)production possibilities dilemma
C)business resolution device
D)absolute advantage determination
E)comparative advantage determination

Question

Quizplus · Accepted Answer

An economic system refers to the set of mechanisms and institutions that resolve the basic economic questions such as what to produce, how to produce, for whom to produce, and how to distribute the output. Therefore, choice A is the correct answer. The production possibilities dilemma, business resolution device, absolute advantage determination, and comparative advantage determination are not the correct terms to define the set of mechanisms and institutions that resolve the basic economic questions.

The Set of Mechanisms and Institutions That Resolve the Basic