Question
What is the structural framework in which households, businesses , and governments undertake the production and consumption decisions that allocate limited resources to satisfy unlimited wants and needs. corporation society government economy
Answer
4.1
(201 Votes)
Lawrence
Master · Tutor for 5 years
Answer
Economy
Explanation
This question relates to the fundamental principles of economics. It defines the structural framework where multiple entities such as households, businesses, and governments undertake production and consumption decisions. These entities are dealing with the key economic issue of allocating limited resources to meet unlimited wants and needs. There can be different frames answering this question but the fundamental structure in which these decisions are made and resources are allocated to fulfill those wants and needs is called an 'economy'. So, an 'economy' is the most accurate term in this context since neither corporations, societies nor government provide the holistic view of allocation of resources in a broad framework, they are parts of an economy.