Which economic question does the decision to produce butter instead of guns answer?

1.What to produce?
2.How to produce?
3.For whom to produce?
4.Who has a comparative advantage in gun production?
5.Who has an absolute advantage in butter production?

I am a little confused on this question. I am stuck between the answer (3) and (5). I would appreciate any help. Thanks

I think I am thinking too deeply into it. Is it simply (1), what to produce?

The economic question that the decision to produce butter instead of guns answers is "What to produce?" The decision to produce butter instead of guns indicates that the focus is on producing consumer goods (butter) rather than capital goods (guns).

To distinguish between options (3) and (5), let me explain further.

Option (3) "For whom to produce?" is concerned with identifying the target consumers of the goods. It delves into questions such as whether the goods are produced for the general public, a specific group of individuals, or for export markets. The decision to produce butter instead of guns does not directly provide us with information about the intended consumers. It merely indicates the choice between producing one type of good over another.

Option (5) "Who has an absolute advantage in butter production?" relates to the productivity and efficiency of producing a specific good. It examines which country or individual can produce a good using fewer resources or in less time compared to others. While it is possible that the decision to produce butter instead of guns suggests that there is an absolute advantage in butter production, it does not definitively answer this question. The decision could be based on a variety of factors such as market demand, availability of resources, or government policies.

Therefore, the correct answer is (1) "What to produce?" as the decision to produce butter instead of guns ultimately determines the type of goods that will be produced.