Answer;
Who will consume the goods and services?
What goods and services will be produced?
Explanation;
There are three key economic questions every society must answer. These are;
- What goods and services should be produced?
- How should these goods and services be produced?
- Who consumes these goods and services?
The role of a consumer (or of consumers in general) is important in an economic system because it is consumers who demand goods and services. When they do this, they make it so that other people can have jobs making the goods and services the consumers want.
Answer: A target price for farm crops is an example of price floor because it’s fixed ahead of harvests with the interest of farmers in mind.
Explanation: A quick definition of both concepts would be of help. A price floor is usually fixed by government legislation and it ensures that the price of a commodity or service does not fall below a certain minimum. In the case of farm crops, a floor price makes sure that the farmers are guaranteed a level of profit in case there is poor harvest for any reason whatsoever. The price floor must be fixed above the equilibrium price for this to be effective.
A target price is an expectation of the future price of commodities or services, and hence prices are fixed ahead of the harvest in the case of farm crops. This is so because as explained earlier, future conditions might change and become unfavorable, therefore making the current market price unprofitable for farmers. If for example, a sack of potatoes currently sells for $30, the government may fix the price floor ahead of the harvest season at $45 per sack. This implies that after harvesting farmers can still sell at $30. However if the harvest turns out to be bad perhaps due to natural disasters, pests or fungal attacks, etc, then the farmers can go ahead and sell at $45 and possibly higher. No farmer is allowed to sell below $45 (since that is the ‘floor’). That way, farmers would still have some profit guaranteed and would be encouraged to remain in the farming business.
Answer:
Continuous production process
Explanation:
Continuous production process -
It is also known as continuous flow process , continuous process .
It refers to the constant method to manufacture , produce or process the goods and services , is referred to as Continuous production process .
The example of Continuous production process is blast furnace , nuclear power plants etc.
The method demands a lot of attention and manual work to perform this task .
Hence , from the given scenario of the question ,
The correct term is Continuous production process .