Which is one of the five fundamental questions

Question

1. The economy of Germany would best be classified as:

1. a market system.
2. socialism.
3. a command system.
4. pure capitalism.

2. By consumer sovereignty we mean that

1. government is responsible for protecting consumer interests.
2. businesses decide what the consumer will buy.
3. consumers determine what goods and services are produced.
4. all goods and services are produced by consumers.

3. Consumers express self-interest when they

1. seek the lowest price for a product.
2. search for jobs with the highest wages.
3. collect economic profits.
4. reduce business losses.

4. Which is one of the five fundamental questions that need to be dealt with in any economic system?

1. Who will be the richest group in the economy?
2. What makes the rate of unemployment low?
3. How high should the prices of goods and services be?
4. What goods and services will be produced?

5. A characteristic of centrally planned economies is that

1. output reflects the pattern of consumer spending.
2. the price is relatively unimportant in allocating resources.
3. there are many incentives for innovation and hard work.
4. income is fairly distributed among individuals.