Question

Why do business owners have to answer the three economic questions?

The answers are something banks want when they review a business plan.
The answers determine the best way to use their resources.
The answers help determine whether a resource is scarce.
The answers are required by federal law.

Answer 1

Answer: The answers determine the best way to use their resources.

Explanation: The three important economic questions for business owners are "what to produce", " how to produce", and "for whom to produce". The answer to these questions helps firms to maximize available resources in a situation of scarcity.

Economist analyzed that these 3 economic questions is important for any successful business.