Answer:
"What to produce?", "How to produce?", and "For whom to produce?" are the three fundamental economic questions that must be answered by any economy, whether it is a traditional economy, a market economy, or a planned economy.
Step-by-step explanation:
What to produce?: This question refers to the selection of goods and services that an economy chooses to produce. The choice of what to produce is influenced by consumer demand, available resources, technology, and government policies.
How to produce?: This question refers to the production methods that an economy uses to produce goods and services. The choice of how to produce is influenced by resource availability, labor skills, technology, and the cost of production.
For whom to produce?: This question refers to the distribution of goods and services within an economy. The choice of for whom to produce is influenced by factors such as income distribution, consumer demand, and government policies.
These three economic questions are interconnected, and the answers to one question will affect the answers to the other two. By answering these questions, individuals, firms, and governments can make decisions that will help to optimize the allocation of resources and maximize the overall welfare of the economy.
Factors To Consider:-
Resource availability: This includes both natural resources, such as land, water, and minerals, and human resources, such as labor and skills.
Technology: The level of technology available in an economy will determine the most efficient way to produce goods and services.
Consumer demand: The needs and wants of consumers will play a major role in determining what goods and services should be produced.
Cost of production: The cost of producing a good or service will be a key factor in determining how it is produced.
Competition: The level of competition in a market will influence the prices of goods and services, and the level of innovation and efficiency required to succeed.
Government regulations: Government policies and regulations can influence the types of goods and services that are produced, the methods used to produce them, and the distribution of goods and services.
By considering these factors, individuals, firms, and governments can determine what to produce, how to produce it, and for whom to produce it in a way that maximizes the benefits and minimizes the costs for all stakeholders in the economy.