Question

Costa rica is a top exporter of coffee. the highest-quality coffee is sold abroad, and the lower-quality coffee is consumed by the native costa rican people. which basic economic question is not addressed in this information? what to produce? why to produce? how to produce? for whom to produce?

Answer 1

Three basic economic questions are -

1. What to produce?
2. How to produce?
3. Whom to produce for?

Economists study how households and businesses interact to produce the goods and services people need. They look at the factors of production, such as land, labor, and capital, and how they are combined to produce goods and services. Essentially, economists try to answer three sets of questions:

• What goods and services should be produced to satisfy consumer needs?
• How much of this product do you need?
• When should you produce a report?
• What is the best way to produce goods and services?
• How should these products be produced, and what resources should be used to do so?
• Who should be the recipients of goods and services?
• How should the product be allocated among consumers?

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