questions. 1. The main cause of the basic economic problems facing every society is A. poverty. B. political instability. C. scarcity. D. social unrest. 3. A type of land, as a factor of production, whose supply is not fixed in the long run is 2. Any point within the Production Possibility Curve (PPC) shows 4. A. the efficient combinations of factor inputs. B. that more of the two goods can be produced given the available resources. C. there is full employment of all factor inputs in production. D. that to produce more of one good, less of the other good must be produced. 5. A. rice. B. natural gas. C. coal. D. iron ore. An economic system in which the state owns and controls all the means of production is A. free enterprise. B. socialist economy. C. mixed economy. D. capitalist economy. In capitalism, prices of raw materials are mainly determined by the A. production cost of industries. B. planning authority of government. C. market forces in the