what are the 3 basic economic questions
The 3 basic economic questions are:
- What to produce?
- Which goods and services should be made with limited resources (food or weapons, trains or highways, hospitals or shopping malls, etc.).
- How to produce?
- What production methods to use and how to combine resources like labor, land, capital, and technology (use more workers or more machines, polluting energy or clean energy, local materials or imports).
- For whom to produce?
- How the output is shared among people in society (who gets what, based on income, need, government policy, or market forces).
All societies, from traditional economies to modern mixed economies, must answer these three questions because resources are scarce and choices have to be made.