Question 2
Basic ConceptsI. What and how much will be produced?
II. How will it be produced?
III. For whom will it be produced?
IV. How much will be exported and consumed?
From the above, identify the combination of basic resource allocation questions in economic analysis.
- A.I, II and III
- B.I, II and IV
- C.I, III and IV
- D.II, III and IV.
Show the answer and explanation
Answer: A (I, II and III)
Explanation
Every society must decide what to produce, how to produce it and for whom; exports are not one of the basic questions.