2
QuizMultiple Choice

The Three Questions of Economics

Question 2 • * HSA 26-27 Economics

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

Answer
A
People’s desires and needs are always changing.
B
Businesses need to use limited resources wisely.
C
Traditional methods of production are outdated.
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. Businesses must make choices about how to use those scarce resources to meet people’s needs and wants. Therefore, “Businesses need to use limited resources wisely” best illustrates why addressing the questions of economics is important.

AI-written and checked against the verified answer.

Previous
Next