AP Economics Chapter 2 Review Questions In 1996 McDonald's introduced its Arch Deluxe hamburger, which failed to catch on with the public and was subsequently dropped from the menu. This failure illustrates the idea of: The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially: In a competitive market economy firms will select the least-cost production technique because: "With as much machinery as possible." such choices will result in the full employment of available resources. technological change. "Using the latest technology." to do so will maximize the firms' profits. downsloping demand. "By exploiting labor." specialization. "Using the least-cost production techniques." this will prevent new firms from entering the industry. consumer sovereignty. "dollar voting" by consumers mandates such a choice.