Final answer:
The three questions of economics help in making decisions about allocating scarce resources.
Step-by-step explanation:
Economics is the study of how humans make decisions in the face of scarcity. These decisions can be individual, family, business, or societal decisions. Scarcity refers to the fact that human wants for goods, services, and resources exceed what is available.
The three questions of economics, which are related to resource allocation and scarcity, help in making decisions about allocating scarce resources. These questions are:
- What goods and services should be produced?
- How should these goods and services be produced?
- Who should receive these goods and services?
By asking these questions, individuals and societies can prioritize their limited resources and make the best economic decisions possible.