Question

As the owner of a small business, Zebadiah is deciding what materials he should use to make the softest teddy bears on the market. Zebadiah is solving which key question of economics?

a- what goods and services should be produced
b-who will consume the goods and services produced
c-how should goods and services be produced
d-he is not solving any of the key questions

(economics, but they have a category for this)

Answer 1

Since Zebadiah wants to produce high-quality teddy bears to be sold to the consumers, we can conclude that he more likely wants to solve on how his goods and services are produced. He should find high-quality resources and proper machinery in producing the softest teddy bears as what he aims. 

Answer 2

I believe the answer is: d-he is not solving any of the key questions

The key questions of economics are:

What to produce? already answered when Zebdiah is choosing to produce teddy bears for the consumers.

for whom it should be produce ? not specifically mentioned on the excerpt above

how to produce it- even though Zebadiah touch some aspect of this (the material) . he still hasn't address other important aspects, such as the type of technologies that he used, how many labors that he need, etc.