economic decisions are made at every level in society. when we try to decide which production method to use among several alternatives, which of the following key economic questions are we trying to answer?

When we choose between different production methods, we are answering the key economic question: “How to produce?”

In standard economics, every society must answer three basic questions:

• What to produce?
• How to produce?
• For whom to produce?

Comparing several alternative production methods (for example, labor‑intensive vs. capital‑intensive techniques, or fossil fuel vs. solar power) is specifically about deciding how goods and services should be produced , i.e., which combination of resources and technology to use.