"Who will receive the goods and services?" is the question that must be answered before production can take place. The correct answer is option B.
- Any society faces a significant challenge in making the best use of its available resources.
- This is due to scarcity in that society.
- To solve the economic problem, three questions can be used. They are:
- What types of goods and services should be produced?
- How, will we produce the chosen goods and services?
- Who will use the goods and services produced?
- A manufacturer, for example, must decide whether to produce kitchen appliances or weapons.
- Then he must decide how to manufacture the goods.
- He must choose the material that will be used to make those goods.
- He must then decide to whom he will serve these goods.
- He must decide whether to serve these goods to people on a first-come, first-served basis or based on their education level, age, and so on.
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