3
QuizMultiple Choice

The Three Questions of Economics — Quiz

Question 3 • Economics

Which of these best illustrates deciding how to produce a specific product?

Answer
A
Should we produce jeans with expensive machinery or less expensive labor?
B
Do we have enough customer support to charge more for our jeans?
C
Are jeans still "in," or should we develop a line of skirts instead?
D
Can we market our jeans to teenagers or focus on people in their twenties?

Explanation

Deciding how to produce means choosing the method or resources used to make a product. Choice C compares using expensive machinery with using less expensive labor to produce jeans, so it best illustrates this decision. The other choices focus on what product to make, pricing, or which customers to target.

AI-written and checked against the verified answer.

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