Answer to Question #229435 in Microeconomics for Ntando

Question

Rich economies which produce more goods and services each year:
A. do not have an economic problem.
B. still have an economic problem.
C. do have an economic problem but are solving it.
D. give more money to the government to solve its problems.
E. Balance sheet

Answer 1

Solution:

The correct answer is C. do have an economic problem but are solving it.

Despite the production of more goods and services each year by rich economies, they still experience economic problems such as inequality, high levels of unemployment and lack of employment opportunities, air, water, and land pollution, and social problems such as high levels of crime and drug abuse.

The good news is that they keep reinventing new ways to solve the prevailing problems since they have the needed resources to effect the changes required.