Question

What are the three basic issues every economy must address at some point?

Answer 1

1) What to produce
2) How to produce
3) Whom to produce

Answer 2

In a command economy, the matter of what goods to produce is handled by a central economic authority. Contrary to that, a free market is governed by individual choices. The production of goods can be handled either domestically, or it can be outsourced to foreign countries. Finally, making sure that the targeted customers are able to afford a service or a product is of the utmost importance.