Multiple Choice
Which of the following best describes scarcity?
0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
One of the three fundamental economic questions deals with deciding what to produce. Which of the following best describes this question?
A
Who should make the decisions about resource allocation?
B
Which goods and services should be produced with limited resources?
C
How can resources be made unlimited?
D
How should goods and services be distributed among individuals?
Verified step by step guidance1
Understand that the three fundamental economic questions are: What to produce? How to produce? For whom to produce?
Recognize that the question 'What to produce?' focuses on deciding which goods and services should be produced given limited resources.
Identify that this question addresses the allocation of scarce resources to different goods and services, reflecting opportunity costs and priorities.
Note that the other options relate to different economic questions: decision-making authority, resource availability, and distribution of goods.
Conclude that the best description of the 'What to produce?' question is: 'Which goods and services should be produced with limited resources?'
Related Videos
Related Practice
