The correct answer is 1) what goods and services should be produced.


In trying to cover the needs of its people, each society needs to answer the three basic economic questions:

  • What should we produce?
  • How should it be produced?
  • And for whom should we produce it?

These questions remain relevant regardless of what economic system a country decides to adopt and develop. First and foremost, they are linked to such fundamental economic concepts as scarcity and allocation.

It goes without saying that every society has a limited amount of resources at hand. This leads us to the point that these resources need not only be used adequately but also distributed in a way that would be fair for everyone and would help the nation meet its economic goals.

Thus, the first economic question compels us to figure out what exactly should be manufactured given the scarce nature of resources. The marketing of goods and services as well as projecting customer reception are something that each enterprise handles individually and namely, people in respective roles.

Economics data.
Source: https://www.royalholloway.ac.uk