What Are the Three Basic Questions Faced by Every Economy

question 192

Multiple Choice

What are the three basic questions faced by every economy?

• A) What, how, and for whom will goods be produced?
• B) When, where, and how much will be produced?
• C) Why, where, and when will goods be produced?
• D) How, how much, and why will goods be produced?

---

Definitions:

Joint Production Cost

Costs incurred in the process of producing multiple products simultaneously from the same raw materials or process.

Grinding Machine Time

The amount of time a grinding machine is used during the production process, often considered in cost calculations for products requiring such processing.

Satisfy Demand

The ability of a company or market to meet the consumer demand for goods or services, either through current supply or production capacity.

Constrained Resource

A factor that limits the output of a process or the achievement of organizational goals, often critical in determining maximum production or service levels.