Which basic economic question determines how a society will produce goods and services

Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.

If quotas on sugar were eliminated in the united states, domestic production of sugar would fall. why is this a benefit in economic terms for the united states? i. resources are freed up that could be used more efficiently elsewhere. ii. it is beneficial because it allows foreign producers of sugar to earn income and thus those countries are better off. iii. u.s. consumers are able to enjoy increased consumer surplus because of the lower prices of imported sugar.

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.