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AssignmentMultiple Choice

The Three Questions of Economics

Question 1 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

The three questions of economics are based on decisions made by economies.What statement best describes why economies must make these decisions?

Answer
A
Economies must make these decisions because resources are unlimited, but production must be limited.
B
Economies must make these decisions because resources are limited.
C
Economies must make these decisions because consumers cannot make decisions on their own.
D
Economies must make these decisions to prevent producers from over-producing.

Explanation

Economies must decide what to produce, how to produce it, and who will receive it because resources such as labor, materials, and time are limited. Since resources cannot satisfy every want, societies have to make choices about how to use them. Therefore, “resources are limited” is the best description.

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