What are the three economic questions are fundamental to understanding how societies allocate their scarce resources. These questions are: What should be produced? How should it be produced? and For whom should it be produced? Every society must answer these questions in order to organize its economy.
The answers to these questions can vary greatly depending on the society’s values, culture, and level of development. In a market economy, for example, the decisions about what to produce, how to produce it, and for whom to produce it are largely made by individual consumers and businesses. In a centrally planned economy, on the other hand, these decisions are made by the government.
