2
QuizMultiple Choice

The Three Questions of Economics — Quiz

Question 2 • Economics

Which of these best illustrates the importance of addressing the three questions of economics?

Answer
A
People’s desires and needs are always changing.
B
Traditional methods of production are outdated.
C
Businesses need to use limited resources wisely.
D
Businesses need to limit production.

Explanation

The three basic economic questions—what to produce, how to produce it, and who receives it—arise because resources are limited while wants are plentiful. Addressing them helps society decide how to use scarce resources effectively. Therefore, “Businesses need to use limited resources wisely” best illustrates their importance.

AI-written and checked against the verified answer.

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