A town builds a new road north of the town to replace one that was in bad shape. The new road is wider, has smooth pavement, and flowering bushes have been planted along the roadside. Compared to the road south of town, the new road gets very little use. This is because many of the residents work in a factory several miles south of town. The north road is used mostly on weekends by wealthy families driving to their mountain cabins. Many residents are angry about this. Which of the following economic questions was NOT adequately considered before building the road? i. What should be produced? ii. How should it be produced? iii. Who will use what is produced?
The town appears not to have adequately considered what should be produced: a new road was built north of town even though many residents need to travel south to work. It also did not adequately consider who would use the road, since it is used mostly by wealthy families going to cabins while residents are unhappy with the result. How the road was built was considered—the town chose a wider road with smooth pavement and flowering bushes. Therefore, the unmet questions are i and iii: what to produce and who will use it.
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