The maximizing behavior of individuals and firms determines society's three main allocation decisions:
A) which goods are produced, how they are sold, and who gets them.
B) which goods are produced, how they are produced, and who finances them.
C) which goods are imported, how they are stored, and who gets them.
D) which goods are produced, how they are produced, and who gets them.

Question

Quizplus · Accepted Answer

The maximizing behavior of individuals and firms determines the production of goods, the methods of production, and who gets them. This is the fundamental concept of economics and the basis for understanding how society allocates resources. The other options are not relevant to the allocation decisions dictated by maximizing behavior.

The Maximizing Behavior of Individuals and Firms Determines Society's Three