Question

What is the first question that needs to be answered when organizing an economy? A. How is production to be organized? B. What is to be produced? C. What is the most effective allocation of resources? D. How are goods and services to be distributed?

Answer 1

The first question that needs to be answered when organizing an economy is B. What is to be produced?
Before everything, the producer needs to figure our what it is that he or she wants to produce, what exact type of goods they want their consumers to buy. Based on that decision, they will allocate as much resources as necessary to actually produce those goods.