Question

Which basic economic question determines how a society will produce goods and services?

Answer 1

The correct answer is B. How can available resources be used efficiently?

Explanation:

The basic purpose of the economy is to explain how individuals and societies use the resources they have and how they deal with scarcity or the lack of sources they cannot produce. This is a key idea in the production of goods and services because it determines other factors such as the services and goods produced, how these are sold and produced, and even the price of these.

For example, if a human society lives on an island that offers them wood, the availability of this product will determine the products they can make and sell, the potential customer for these, and the price of the products. Also, the people of this society will have a successful economy if they use this available resource efficiently. Thus, the basic economic question that determines production is "How can available resources be used efficiently?" because the availability of resources and its use affect other factors in production.