What tree basic question does economics answer
1) What to produce?
2) How to produce?
3) For whom to produce?
Economics answers three basic questions:
1. What to produce: Economics helps determine what goods and services should be produced based on various factors such as consumer demand, available resources, and technology.
2. How to produce: Economics studies the different methods and techniques that can be used to produce goods and services. This involves analyzing factors such as labor, capital, and technology, and finding the most efficient and cost-effective ways of production.
3. For whom to produce: Economics examines the distribution of goods and services among different individuals and groups in society. It considers factors such as income, wealth, and needs, and seeks to understand how resources can be allocated to best meet the needs and wants of society.
Economics, as a social science, aims to answer various questions related to the production, distribution, and consumption of goods and services. Three fundamental questions that economics seeks to address are:
1. What to produce: This question pertains to the allocation of limited resources to produce different goods and services. In an economy, choices must be made about which goods and services are worth producing and which ones are not. This decision is influenced by factors such as demand, cost of production, and resource availability.
2. How to produce: This question concerns the determination of the most efficient methods of production, including the utilization of resources and technologies. Economists analyze different production techniques, costs, and productivity levels to identify the most effective ways to produce goods and services.
3. For whom to produce: This question relates to the distribution of goods and services among individuals or groups within a society. Economists examine how resources and outputs are allocated across different income levels, social classes, or demographic groups. Factors such as income distribution, purchasing power, and inequality play a significant role in determining who benefits from the production of goods and services.
It is important to note that these three questions are interrelated and often require a complex analysis to find optimal solutions. Economists use various theories, models, and empirical data to understand and explain the choices made in economic systems.