Question

The basic economic questions that every society must address include which of the following?

• A. what, how, and for whom
• B. where, when, and why
• C. which, why, and what
• D. when, how, and which

Answer 1

Answer: (A)

what, how, and for whom

The three fundamental questions of economics are:

1. How to produce: it talks about the techniques that should be used to produce goods and services that are required by the people.

2. What to produce: it talks about the things that should be produced with the limited resources that are available in the economy.

3. For whom to produce: it talks about the selection of the category of people for whom the goods are to be produced. More for the rich, less for the poor or less for the rich and more for the poor.